Dividend Income

I love buying shares of dividend stocks that pay a dividend. Dividends are a great way for companies to give back their earnings to the company’s shareholders. In classic finance theory, a company’s stock share price is derived from the present value of its future income…its dividends. Paid to Wait for Dividend Stock Prices to Increase There have been instances of good companies that have been caught in a value trap, and their stock prices have tread water for years. Microsoft is a great example that immediately comes to mind. Microsoft continued to trade in a very narrow range for years before breaking out earlier this year. But, the one good thing for investors was that Microsoft has initiated a dividend … Read more