Nancy Graham CPA, CA, CIM, CFP, TEP

Portfolio Manager
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Demystifying Dividend-Paying Stocks

September 7, 2017 - 0 comments

Sometimes, small self-deceptions work fine – like if I get to the gym by imagining I can then treat myself to my favorite dessert. Unfortunately, in investing, not all mental-accounting tricks add up as well. Here’s one I often hear: “Why don’t I load up on dividend-paying stocks? I can then spend the payouts as I please, right?”

It’s convenient to think of dividends as being free, “extra” money. In today’s “No Dumb Questions,” I’ll offer you an overview of how dividend-paying stocks really work. Hint: The payouts aren’t as “free” as you might think.

I’ll also cover why dividend-paying stocks aren’t inherently bad investments, but neither should they be the main attraction in your portfolio. There are more sensible strategies for spending and investing your total wealth. Want to find out what those strategies are? Watch today’s video!


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