- In selecting a stock for purchase, the dividend rate receives more attention than any other one fact, especially among nonprofessional investors. The high cost of living has caused more and more people to seek stocks that pay high dividend rates.
- Because stockholders are conscious of the dividend rate more than other facts, this element is often over-emphasised.
Dividends are obviously seen above the Ground!
To be successful in the management of securities, it is necessary to buy stocks that are oversold and to sell stocks that are overbought. Stocks with a high dividend rate are seldom oversold.
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Investor’s desire is always invest in best dividend paying mutual funds, as dividends have a very vital part to play in any investment portfolio. They give investors an instant source of revenue, and during bear markets such as this one, protect against the downward movement of share prices.
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