We All Like Getting Paid…Right?

24 08 2009

Mike Carignan 012a

By Mike Carignan, CRPC

After an equity market roller coaster ride, like we saw in 2008 and early 2009, many investors are wondering “where is the next hot dot?”  The more they watch the financial media the greater the urge to jump into the ocean of investments and try to snag one of the very few stocks that they’ll be able to ride high and make a fortune.  Of course, hearing this in the news is it’s exciting, but will it get them where they want to go?  Most investors forget, or just don’t know about the power of the dividend.

If our investor wants to get some good consistent growth of his capital, getting paid along they way may be a great way to get a boost.  If our investor takes $10,000 buys a non-dividend paying stock instead of a 5% dividend paying stock he needs that non-dividend stock to grow 50% more over a 10 year period to sacrifice those dividends.  Even down markets are a little easier to bear when you’re getting paid along the way.

A long term outlook and good consistent disciplined investing are more likely to provide a good return over time than chasing the “hot dot”.  Just think of the tortoise and the hare…the hare had an exciting start but the tortoise won in the end.

This blog is for informational purposes only.  This is neither an offer to purchase nor sell any securities.  All investing involves the potential of loss – including invested principal.  Indices quoted are general barometers of security price movement.  You cannot invest directly in an index.  All information is obtained from sources deemed reliable but not guaranteed.  Past performance is not a guarantee of future performance.  No tax or legal advice is given nor intended.

Investment advisory services provided by PARAGON Wealth Strategies, LLC, a registered investment advisor. 

10245 Centurion Pkwy. N. Ste 105, Jacksonville FL 32256   (904) 861-0093

www.WealthGuards.com

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