Dividend Investing Eliminates Bad Habits

Dividend Growth Investing is my preferred investment strategy. I've used this strategy extensively to build up my own dividend income stream over the years. However even more beneficial than the passive dividend income which I have been able to accumulate, a focus on dividends has enabled me to reduce several bad investing habits.

By focusing on dividend income and company cash flow, an investor can actually be driven to buy low and achieve greater dividend income in the process. Having a focus on generating a rising stream of dividend income helps minimize my need to frequently trade in and out of a stock to chase returns. Not only does this save me significant transaction costs, and commissions that I would otherwise be paying, but it also gives my capital time to compound and allows my dividend income to increase.

Source: Seeking Alpha

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