It is very common today to get a client or prospect asking
about high dividend paying stocks. It is
perhaps even more common for many advisors today to include dividend stocks as
a part of their lead pitch. “We focus on
high quality dividend paying stocks,” they might say. This will undoubtedly lead to affirming head
nods from the prospective clients. And
therein lies the problem. This idea that
high quality dividend paying stocks are a guaranteed smart investment with
great upside and limited downside potential has become an axiom of sorts in the
eyes of the general public. No further
data is needed; the safety of dividend stocks is self-evident.
