It Pays to Be Patient With Dividends

The rising and falling of stock prices may get a lot of attention, but dividends can play a huge role in an investor's total returns. With Dividend Kings -- which are companies that have managed to increase their yearly dividend for at least 50 consecutive years -- and dividend-focused index funds, dividends can be a reliable source of income. It's a way for companies to reward shareholders for being patient.

Part of being patient should be delaying receiving your dividend payouts as cash until retirement. Here's why.

Image source: Getty Images.

Continue reading


Source Fool.com