Investing In High Dividend-Paying Stocks

Significance of Dividends

Investing in high dividend-yielding stocks is considered to be a strategic way to make a reliable and regular source of passive income to build wealth. Armaan Madhani explains how and why, fundamentally strong and consistent dividend-paying companies can be sound value bets for investors in the long run 

Capital appreciation has always been the blue-eyed boy of investment returns. Dividend earned on equity investments plays a second fiddle role and therefore usually gets ignored. The rally in domestic equity markets over the last two and a half years has led many novice investors to surmise that return from equity investment primarily comes from an increase in share prices. They consider dividends to be a miniscule cherry on the cake that barely contributes to the overall value that is created over the investment horizon.