Value Investing

Importance of Dividends

One interesting learning point from this GFC is the importance of continual income stream into the portfolio. This is vitally important so that the new cash inflow can be used to take advantage of any opportunities that arise (e.g. market goes down and you want to average down). I think that in building a portfolio, there should be some emphasis on dividend-paying stocks to generate a continual income.

A Bloomberg article here pointed out something interesting that Buffett is getting about $15M per quarter in dividends for his own personal portfolio.


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