Monday, December 16, 2013

Why I like dividends

Recently I bought my wife some Dundee REIT (D.UN). It has had a tough few weeks and its share value is still in the red in my wife's books. Yet, despite this loss, my wife's account shows a gain. The other day she collected the monthly dividend. It pulled her up into the black.

This is the importance of dividend income. One is not totally at the mercy of share value.

And, in the case of Dundee REIT, I believe the dividend is safe. (It is paying 8 percent at the moment and, as my wife and I only need 7 percent, we are confident in meeting our needs.)

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