Are Stocks That Pay Dividends Better?

Money is fungible—it doesn’t matter whether you receive it as income or capital appreciation. A company’s value shouldn’t depend on whether it pays a dividend. However, behavioral finance researchers have found that many investors perceive dividends as more stable and predictable than capital gains. Tax issues are another important consideration.

How Do Dividend-Oriented Strategies Perform in a Recession?

Dividend stocks historically hold up well during economic slowdowns and can provide downside protection in drawdowns. However, funds that focus on high-yield stocks without incorporating quality screens tend to be more exposed to economically sensitive sectors, and companies that may not be able to keep paying dividends during recessions.

Can I Live Off My Portfolio’s Dividends and Interest Income in Retirement?

Some investors like this approach. Dividends can create steady income similar to a regular paycheck, and many investors like the idea of leaving their principal untouched. However, it can be tough to create a portfolio that generates enough yield for an income-only approach, especially one that keeps pace with inflation.47:{"termId":3200,"name":"The Associated Press","slug":"associated-press","avatar":"https://www.theepochtimes.com/assets/uploads/2021/10/14/AP-logo-square-1080.jpg","taxonomy":"authors","termTaxonomyId":3210,"description":"","rootSlug":"authors","parent":28453,"uri":"/author/associated-press"} 46:["$47"] 4a:{"termId":160171,"name":"Bright","slug":"bright","parent":0} 4b:{"termId":165215,"name":"Personal Finance","slug":"personal-finance-bright","parent":160171} 4c:{"termId":165216,"name":"Investing","slug":"investing","parent":165215} 49:["$4a","$4b","$4c"] 48:{"termId":165217,"name":"Stocks","slug":"stocks","ancestors":"$49","taxonomy":"category","termTaxonomyId":164633,"description":"Stay informed with the latest stock market insights. Explore The Epoch Times' comprehensive coverage for valuable updates on i

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