3 Reasons to Avoid Dividend-Paying Stocks
When a company has grown to the point where it makes more money than it has good uses for, such as hiring more workers, spending more on research and development, buying another company, paying down debt, and so on, it may start paying a dividend to its shareholders. Not doing so means cash will just pile up, without being put to sufficiently productive use.
Those dividend payments are attractive to many investors, but some might want to bypass dividend stocks. Here are three reasons you might avoid dividend payers -- followed by a few even better reasons to do so.
Image source: Getty Images.
Source Fool.com
