Summarizing the pitch these are stocks that deliver

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Unformatted text preview: hen you buy high dividend stocks. Summarizing the pitch: These are stocks that deliver dividends that are comparable and, in some cases, higher than coupons on bonds. Buy these stocks and you can count on receiving the dividends for the long term. If the stock price goes up, it is an added bonus. If it does not, you still earn more in dividends than you would have earned by investing in bonds. In fact, this story is bolstered by the fact that many stocks that pay high dividends are safer, larger companies where the potential risk is low. q The Pessimist Pitch: “Defensive I nvestments”: T his i s t he pitch that gains resonance in bear markets. In an environment where investors have seen their equity portfolios wither as the stock market declines, stocks that pay high dividends offer solace. Summarizing this argument: Even though these stocks may lose value like other stocks, investors holding on to them can still count on receiving the dividends. In fact, during crises, there is a general flight to...
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