12 Things To Dislike About Dividend Growth Stocks

Everybody knows where I stand on dividend growth investing. I do not consider some of the following to be much in the way of drawbacks, or even necessarily to be true. That said, some of the following items are important disadvantages that need to be seriously considered. I will refrain from editorializing, and I won't present the ways that a dividend growth investor can ameliorate the valid risks presented. My goal here is to present the downsides of dividend investing as straightforwardly as possible.

1. Market risk
2. Dividend risk
3. You may not be able to make up for a dividend cut
4. Dividends are boring
5. Initial low yield (sometimes)
6. Dividends are taxed
7. Slower growing company
8. Behavioral changes
9. Non-compounding ((I))
10. The burden of reinvestment
11. Non-compounding ((II))
12. Stock prices drop by the amount of the dividend

Source: Seeking Alpha

Related Articles:
- 10 Dividend Stocks Ignoring The 4% Rule
- Dividend Stock Bubble: Is It Even Possible?
- 8 Dividend Stocks To Consider While Waiting on Apple to Pay Its First Dividend
- Holding Bonds Could Push Your Portfolio Into The High Risk Category
- Love People, Use Dividend Stocks