Dividends For A Steady Payday

While providing market commentary for CBS Los Angeles Radio affiliates KFWB and KNX, show host Bob McCormick asked me why anyone would ever buy stocks. The last 10 years have presented significant risks, and for many investors, very little if any return, so why should anyone even bother with the stock market.

Here’s my answer, based on investor behavior patterns over the past 80 years. For many years, people held onto shares of dividend paying stocks, and rarely considered selling them so long as dividends were paid. Additionally, companies rewarded loyal shareholders by increasing dividend payouts each year.

Source: Forbes

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