Monday, November 23, 2009

Six Common Misconceptions about Dividends

Jason Whitby of Investopedia.com writes about six common misconceptions involving dividends that investors should be aware of especially during periods of questionable returns and high volatility in markets.

"During periods of low yields and market volatility, more than a few experts recommend dividend stocks and funds. This may sound like good advice, but unfortunately, it is often based on misconceptions and anecdotal evidence. It is time to take a closer look at the six most common reasons why advisors and other experts recommend dividends and why, based on these reasons, such recommendations are often unsound advice."

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