Dividend-News
Daily dividend news for investors in dividend stocks
Dividend Investing Is Not Only About The Dividend
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Published Sat, 28 Jul 2012 13:00:54 -0400 on Seeking Alpha
If the sole goal of dividend-focused investing were dividends, then almost every dividend investor would be fighting it out to buy shares of Student Transportation (STB), a debt-laden and share-dilutive bus company that offers an 8.5% yield. But of course, that's not the case. Intelligent dividend investing focuses on the safety and reliability of the dividend, and that's why companies that yield 2%-5% like Coca-Cola (KO) and Johnson & Johnson (JNJ) are often staples in the portfolio of the dividend investor. It's because dividend investing with mega-cap stocks is not about the dividend exclusively. Sometimes I think it would be appropriate to rename dividend growth investing with mega-cap stocks "Last Man Standing Investing." We don't flock to Coca-Cola and Johnson & Johnson just because they pay a dividend, but rather because these are the strongest companies on the planet that are likely to be standing in moments of terrible financial... Read more


