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A Personal Journey: The Power of Dividend Investing
Dividend investing often gets overshadowed by the allure of high-growth stocks and the promise of quick returns. However, for retirement investors like myself, the stability and consistent income provided by dividend-paying stocks are invaluable.
Recent Market Sell Off
Despite the recent market fluctuations, my retirement investment portfolio is currently up 8.3%. This might not seem extraordinary, but there is more to the story. The price of some shares in my portfolio is currently below their purchase price, which, on the surface, might look like a loss. However, thanks to the dividends I’ve accumulated, my overall gains exceed this paper loss.
Dividends therefore provide an income stream that can cushion against market downturns. Over time, this income will compound, leading to significant growth. In my case, the dividends collected have not only offset any paper losses but have also contributed to my overall portfolio growth.
Warren Buffett’s Wisdom
Warren Buffett is a well-known advocate of dividend investing. His famous advice to “buy when people sell” underscores a fundamental principle of dividend investing — to take advantage of market volatility to acquire shares…
