Introducing AAII Dividend Investing
We will soon launch AAII Dividend Investing, a new service devoted to income-producing stocks.
The idea for this service came in part from AAII members. We have received several requests for a model dividend portfolio. Given the historically low yields for bonds and the simple fact that many of our members are near or in retirement, it is not surprising to us that there is a demand for this type of newsletter.
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But there is also a more fundamental reason: dividends matter.
As I write this in early December 2011, the S&P 500 is a few points below where it started the year. But the index still has a positive total return for 2011. How is this possible? Dividends.
If you bought the index last January, you would have earned nearly 2% in dividends, enabling you to earn a positive total return. Over the course of several years, this extra return differential adds up to a lot of money. And it is money that you can spend or reinvest, because it’s comprised of real cash payments.
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