I have talked about the percentage of a stock's cost being covered by dividends lately. Why this is important is that buying dividend paying stock can lower your loses. Say a stock you have in your portfolio is now in trouble and you want to sell it.
On long term buys I have found that the dividends received on a stock covers the capital loss or most of the capital loss in a stock price. That means I have not lost any capital or very little capital. I am not saying that this is a great situation. After all you are investing to make money. However, part of being a successful investor is limiting your losses.
On my other blog I am today writing about Parkland Fuel Corp. (TSX-PKI, OTC- PKIUF) ... continue...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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