Dividends are Important

Dividends are the best way to gauge a company’s true performance & prospects. After all, wouldn't you agree that in order to consistently pay dividends, a company must have a sound business model & steady profits. Simply put, a company’s ability to pay steady dividends over time — & its power to increase them — are the single best clues about the quality of the company.

That’s why the smart investors in the world today are sending this simple & blunt message to corporate boardrooms:

“Don’t give me any more slick press releases. Don’t make me any more empty promises. Just put your money where your mouth is ... and get my dividend check in the mail!”

Truth is: this is not rocket science. You don’t need an exotic stock trading system. All you have to do is to carefully observe & discover dividend superstars, buy & hold them. The stocks I owned so far had paid out closed to 5% in dividends. They are like fixed disposits to me, except they also offer capital gains.

The only problem here is that you will have to file tax for such dividend payouts. But hey, it is a good problem, & I don't mind paying tax for it. Keep the cheques coming, baby!