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Are dividend-paying stocks superior to regular stocks for long-term investments?

I want to invest for my retirement 10 years away. Are dividend-paying stocks superior to regular stocks for long-term investments?

Retirement, Investing, Stocks
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March 2019

Dividend stocks are a great way to invest, but you will find that there are numerous ways to make money.  With retirement 10 years away you will want to look at your tax situation along with picking the correct investments.  For example, since you are most likely not using the income from your investments you will want to minimize your current taxes if your stocks reside outside a tax deferred account. Dividend stocks are not as tax friendly as those that do not pay a dividend since you have to pay taxes every year on all the income they produce.     

Next, you want to do your research to make sure you are picking the right stocks regardless of whether it is dividend paying or not.  GE is a great example of a long term dividend paying company that appeared safe.  It has cut the dividend numerous time and lost money in a generally strong market for stocks. 

Lastly, I would suggest taking a look at companies that pay smaller dividends but have higher dividend growth as a way to start your process for finding companies.  

 

 

March 2019
March 2019
March 2019