4 Reasons to Avoid Dividend-Paying Stocks
Dividend-paying stocks have their advantages. They're dependable and resilient. They don't rise or fall too fast. Plus, they pay you to own them.
Still, dividend stocks aren't universally a great investment. Depending on your situation and your financial goals, investing in dividend payers could be the wrong move. Here are four reasons you'd want to avoid holding dividend stocks in your portfolio.
The total return on a dividend stock has two components -- dividend yield and share price appreciation. Combined, those two values can deliver decent returns. But compared to higher-growth companies, "decent" often means unimpressive. And many dividend payers look even more marginal if you compare them on share price appreciation alone.
Source Fool.com
