Alright guys I've had loads of egg nog, and am ready for the down votes, but here is my chance to cause all sorts of Christmas Eve fun:
Dividend stocks are awesome.
There. I said it. Now I know I'm going to get the whole "a company is worth $100. If it pays a dividend of $5, you now have $5 cash and a stock worth $95" etc. And that is true. Or the classic "if you need income, just sell some shares, and take the capital gains. You'll pay less taxes!" And that is true too.
Except in scenarios where an investor needs to sell shares for income purposes in a shitty market. Like the one we are in now.
Selling stocks at a loss hurts. Who cares about the "tax advantage" when your portfolio is down 30%. The best way to make money is to not lose your original capital, and selling into a down market is exactly that.
This is where dividend stocks shine. You just sit and wait out the market, and your cash rolls in - it doesn't matter if your portfolio is up or down. And if you don't need the cash, you just reinvest your dividends and pick up "cheap" shares or your favourite companies. And in the long term you'll likely get your growth/capital gains too.
I know this won't be a popular opinion, but I'm risking it anyway (blame the eggnog)Happy Christmas /r/investing.
And please don't throw out GE's example of them cutting their dividend. We all know to do our due diligence and make sure that the companies we do invest in won't cut their dividend due to stupid business planning. Do your research, diversify, have a nice blend etc.
Edit. I'm going to throw out that this post was to be a bit tongue-in-cheek.
Submitted December 24, 2018 at 04:17PM by yycyak http://bit.ly/2CwWacn
