6 Reasons to Ditch Dividends

There are plenty of reasons to like dividends, but are they as important as you think? Here are some reasons to consider moving dividends down your investment priority list

Holly Black 23 February, 2021 | 10:21AM
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Dividends are the key thing that many investors want from a holding, but are these income payouts really as important as people seem to think?

Because, while there are plenty of reasons to like dividends (they indicate a disciplined company, boost your returns, and are a sign that a business values its shareholders, to name just a few) they are not the only way to generate and income. And for younger investors, still building up their savings pot, the income may not be all that important anyway.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

 

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