What Are The Pros And Cons Of Dividend Investing You Should Know

Investing in dividends allows an investor to take advantage of many aspects of investing while moving away from reliance on inherently volatile stock market prices.

Dividend investing consists of a strategy which emphasizes stocks that pay significant dividend payments to create income.

These dividends are the (typically) quarterly payments that companies offer to their shareholders, partially as an enticement to keep their shares.

Pro #1:  Insulation From The Stock Market

One of the many advantages of investing based on dividends is the insulation from the stock market. The stock market can hardly be predicted with any accuracy.

Stocks fluctuate based on the fickle demands of investors and the actions of massive hedge funds and other large companies.

Pro #2:  Varied Fluctuation

Dividends do not fluctuate in the same way. At its heart, dividend investing is based on a handful of presumptions that are baked in every quarter.

Pro #3:  Dividends Can Provide A Reliable Income Stream

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