The easiest way to build wealth in the stock market is to invest regularly and watch your investments grow over long periods of time. Buying dividend stocks is the perfect way to make the most of the long-term power of compounding returns, especially if you take the important step of reinvesting those dividends.
Nowadays, a lot of the attention that dividend stocks are getting comes from two big factors. First, with bonds and other fixed-income investments producing almost no income, many income-hungry investors have no choice but to look to the stock market for dividend stocks that will pay them the regular income they need. Second, with the overall market having been flat to lower over the past several years, investors know they can't count on capital gains to provide them with big returns, so they're instead looking for companies that offer solid dividend payouts as a major component of their total returns.
Source: Motley Fool
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Posted by D4L | Tuesday, August 24, 2010 | ArticleLinks | 0 comments »________________________________________________________________
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