Dividends Will Matter More Than Growth by 2030: Here's My Case
Investing is often viewed as a choice between growth and value, but dividend investing is the approach I would suggest investors take.
Overview
In a nutshell, I try to buy well-run dividend stocks when they have historically high yields. It's an income approach with a value bias. But the real lynchpin is the dividend, the cash a company pays to shareholders as a reward for being shareholders.
You can think of dividends as a portion of earnings distributed directly to shareholders. However, dividends are paid from cash flow (the cash flow statement shows the financial impact of dividend payments). Dividends tell you more than you might think about an investment, and I believe more investors will focus on dividends by 2030 (and beyond). Here's why.
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Originally published at www.fool.com.