There are many reasons why an investor may elect to pursue an income-focused investing strategy, but I think that a primary one might be this: he might desire to allow business performance (and the dividend growth that reflects this) to define his success rather than the daily vicissitudes of Mr. Market.
Of course, such a strategy lends itself to criticism from those who decide to take it to a more logical extreme, "Oh look at Poor Joe. He's happy that his dividend income rose from $3,000 to $3,200 even though his portfolio value fell from $100,000 to $40,000." Such thinking can obfuscate one of the greatest appeals of dividend growth investing with blue-chip stocks: with every dividend payment made, an investor is more likely to preserve principal in the event Mr. Market is a little bit harsher.
Source: Seeking Alpha
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Dividend Investing Is Mr. Market's Enemy
Posted by D4L | Monday, October 08, 2012 | ArticleLinks | 0 comments »________________________________________________________________
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