Steady Dividends Can Soften Life's Disasters (TDG)

Your dividend portfolio foundation is key. My view is that investors need to have a core portfolio of strong index funds that provide a base with which to build from. This core foundation will provide you with the basis for the next two things you need to have.

If a company is set up strongly enough, then it should be able to continue dividend payments through natural disasters. And when these dividends are paid that impacts the index positively and you receive the benefits (albeit to soften the losses if the share prices are going down). The same thing happens when you own individual dividend growth stocks.

Source: The Dividend Guy


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