Good old dividend paying stocks - remember those? Dividend stocks are basically like normal stocks that give constant income every quarter. Recently, many investors, especially traders, are more interested in a stock's capital gains than stable income over several years. The dividend-discount model is based on the premise that capital gains, along with income (dividends), equals the total return of a stock. However, some investors are only concerned with a rising stock price rather than the total gain, which once again includes capital gains and dividend income.
Even though high dividends aren't necessarily coupled with good capital gains, I still believe that good and stable dividend-paying stocks should definitely be in every intelligent investor's portfolio. I'll discuss my three favorite dividend-paying stocks, which are relatively stable as long-term investments. Basically, you can invest in these stocks and not worry about your holding while enjoying dividends: Procter & Gamble (NYSE: PG), AT&T (NYSE: T) and Intel (NASDAQ: INTC).
Source: Motley Fool
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Posted by D4L | Sunday, March 31, 2013 | ArticleLinks | 0 comments »________________________________________________________________
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