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3 Reasons to Avoid Dividend-Paying Stocks


It's hard to write negatively about dividend-paying stocks because there's so much to like about them. They can deliver a lot of income, for example: If you have a portfolio of stocks worth a total of, say, $300,000, and it has an overall average dividend yield of, say, 4%, you can expect $12,000 to roll into your account every year -- about $1,000 per month. That can be very welcome not only in retirement, but also if you're far from retirement because the money can be reinvested in more shares of stock.

Still, here are a few reasons you might think twice before loading up on dividend payers.

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Source Fool.com


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