Do you recommend investing in dividend stocks?

Answer 1

Yes, if you have the time, desire and aptitude to research companies.   

Answer 2

I own shares of AT&T. I'm never going to sell these shares because I'm in it only for the dividend income. These days I'm retired. My income from AT&T and from Social Security is more than enough to live on for the rest of my life.

Answer 3

It depends on whether or not you like dividend stocks as a strategy. Long term, reinvested dividends have a force multiplier effect. However, if you are looking for growth, growth stocks tend to give you better returns. 

Answer 4

Dividend stocks, particularly if you reinvest the dividends, can make you a LOT of money over time. But just taking the dividend as cash, unless you have thousands of shares doesn't mean much. 

Answer 5

If you want a long term investment, yes.  I've made a lot of money over time with dividend reinvestment stocks but I've left them alone and let them build.

If you are a newbie to the stock markets I'd suggest mutual funds to start with while you learn the language and the moods of individual stock investing.  Remember the it's a lot like gambling and you should spend any money you can't afford to lose.

Answer 6

No. Do the numbers. Lets use nice round numbers. Say the company with the dividend is $50 a share. How many shares can you afford? Just 100 shares would be $5,000 and you should still diversify. Each share gives a dividend of 10 cents. 100 shares times 10 cents is $10. You get $10 extra dollars per quarter equaling $30 extra dollars a year. Its not worth it. In my opinion, one should look at the value of the stock only and forget the dividend. Multiples matter. Do the math.

Answer 7

I typically don't invest in individual stocks unless there are special situations.  I tend to invest in ETFs or mutual funds.  The guys making millions of dollars a year get to pick which stocks go into each fund.

If you do invest in individual stocks, those that pay dividends can be good, especially if you are retired and rely on your investments for income.  If you are trying to see growth, then a stock that goes up in value a great deal is probably going to be more profitable than a dividend.

In short, there are too many questions to say whether a dividend stock is right for you.

Answer 8

Dividend stocks to have very low dividend yields when they’re publicly traded, and be under very high demand. So, while they might seem like a good investment on paper, they tend to be extremely risky, as the dividend yields aren’t necessarily bound to the company’s value, but may vary given the company’s business strategy at any given moment. This makes dividend stocks much harder to predict than growth-based ones. If you want high dividend yields, I recommend checking the private equity markets. Here’s an alternative that could be worth your while konzortia.capital