Read? Dividend Investing: When Does It Work, And When Doesn’t It Work?
Why would Investors go for Dividend Investing?
One of the earliest pieces of research into dividend investing, all the way back in 1984 by Shefrin and Statman, posited that investors’ preference for dividend investing was due to several reasons, amongst them:
To better exercise control over the management of the firm. i.e by demanding managers pay out dividends from earnings, shareholders ensure that the managers do not spend it on initiatives which are not beneficial to the shareholders
As a form of self control, so as not to overspend by selling too much of their stocks and running out of money
A preference for having something tangible in hand. i.e. a bird in the hand is worth two in the bush (CW8888: Real money in our pocket especially for retirees to fund their living expenses! Money already spent will never lose to Mr Market ever agin! LOL!)...
