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Why Dividend Strategy is so Powerful Even Though Companies are Cutting Dividends
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Many companies suffer these days due to the global economic slowdown due to Covid19. This leads to many dividend payouts being left out. It is easy to say that this makes a dividend investment strategy a bad choice in times like this. Let me show you why I think the opposite.
What is Dividend Investment Strategy?
Those of you not familiar with the dividend investment strategy should have a look at this post I have written on the topic. In short, dividends are cash payouts distributed from a company to its shareholders on a regular basis, based on the numbers of shares held by the shareholder. The dividends give the shareholders cashflow without decreasing the number of shares they hold.
How the Strategy are Impacted by the Financial Turmoil
Now that an increasing number of companies are holding back on their dividend payouts, it is easy to think that the dividend strategy should be avoided.
In the article linked above, I mention three aspects that make dividend investing interesting. Those are:
- Cashflow
- Total returns
