The Power Of Dividend Stocks

Dividends are not always considered sexy nor do they capture investors’ imaginations or tickle their fancies the way the next Apple or Facebook might. But that does not change the fact that dividends may be the single most powerful tool you can use to build genuine wealth in the stock market. IRS auditor Anne Scheiber understood this fact and she used that knowledge to turn a $5,000 investment in 1944 into a $22 million nest egg by the time she died in 1995.

She did it by investing in rock-solid businesses that she understood—and then investing and reinvesting the dividends they threw off until she was a multimillionaire with oodles of wealth at her disposal. The Oracle of Omaha, Warren Buffett, also understands the true power of dividends. You may not think of Buffett as a dividend investor, but make no mistake: It is absolutely no accident that all but six of Berkshire Hathaway’s current holdings pay cash dividends or that those dividends are expected to add up to an eye-popping $1.3 billion in cash for Berkshire this year alone.

Source: Forbes

Related Articles:
- 10 Stocks That Have Paid Uninterrupted Dividends Since 1899
- 4 Communications Services Stocks With Increasing Dividends
- Mid-Year 2012 Top And Bottom Performing Dividend Stocks
- A Simple Approach To Earn More Than 4% In Dividends
- 5 Basic Materials Stocks With Growing 3%+ Dividends