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3 Reasons Why You Should Buy Dividend Stocks
By The Smart Investor  •  July 31, 2020
There are myriad reasons why people invest in stocks. Some do it for capital appreciation. Others prefer to see a stream of dividend income that can supplement their income. With “growth” being the buzzword during this COVID-19 pandemic, the idea of investing for income has fallen by the wayside as the focus has shifted from dividend investing to growth investing. But I believe dividends still retain a certain charm which makes them attractive. The idea of just relaxing at home or by the sea while a steady stream of cash is deposited into your bank account is always appealing. Here are three compelling reasons why you should include dividend stocks within your investment portfolio.

Regular, passive income

The problem with owning a portfolio of growth stocks is that they do not provide a source of cash flow. That is because most high-growth stocks reinvest their earnings to grow their businesses further. While some may undertake regular share buy-backs, few are willing to pay out a dividend....
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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