By Yen Yee
Stock market analysts and investors frequently take sides when it comes to the topic of dividend stock investing. There are the cheerleaders on one side who think dividend stocks are basically the next best thing to having free money.
Then there are the naysayers on the other hand who think that dividend stocks are the worst thing after a government takeover. There is a tendency for the truth to be somewhere in between these two views.
In this article, we will be debunking the four most common misconceptions and myths regarding dividend stock investing to give you a more balanced view on the matter.
Myth 1: Dividend Investing Is Just For Seniors or Retired People
Admittedly, dividend investing is very attractive for seniors, since typically their investing goals are income generation and capital preservation. However, younger investors also want the benefits from the dividend stocks, even when their portfolio value might not be as big compared to the seniors.
Seniors might want to stick with well-established, large corporations, while younger investors might want to focus more towards the lower to middle end of entire dividend spectrum.
For younger investors that want growth stocks, they should purchase up-and-coming yet established companies that can pay small dividends …read more