Today, I’m looking at four quotes on dividend investing, from four very different investors. All four quotes are congruent with my dividend investing philosophy.
“I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it.” – Mark Cuban
While UK investors might not know the name, billionaire Mark Cuban is a household name in the US, due to his involvement on ‘Shark Tank’ – the US version of Dragon’s Den. He’s also the owner of the NBA’s Dallas Mavericks.
I love this quote from Cuban, and totally agree with the logic.
You see, when you invest in a dividend-paying stock, you have an asset that generates a recurring cash flow for you, year after year. It’s a tangible asset, generating a real, tangible cash return, on a regular basis.
However, in contrast, with non dividend-paying stocks, your investment return will come from capital gains only. Therefore, you’re relying on another investor to buy your shares for a higher price than you paid. That, in my view, is more of a risk.
“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” – John D. Rockefeller
John Rockefeller was an American oil magnate, who once controlled 95% of US oil production. According to Wikipedia, he is widely considered to be the wealthiest American of all time and the richest person in modern history.
This quote from Rockefeller is another quote I love regarding dividend investing.
While dividend investing may not be exciting as say, small-cap biotech investing, or small-cap oil investing, the strategy can still be very rewarding for investors. Indeed, I love checking my portfolio’s account history to see which dividends have recently hit my account. The more you invest, the more dividends you receive, and the process of building an ever-growing income stream becomes quite addictive.
“I also do not believe in buying companies that do not pay attractive dividends. Nobody can forecast the future. But it’s obvious that companies that have a strong uninterrupted record are more interesting than those that have not.” – Stephan Jarislowsky
Another name that UK investors probably aren’t familiar with, Stephan Jarislowsky is a Canadian business magnate and investor, with a net worth of around US$1.4bn according to Wikipedia.
This is another excellent quote in relation to dividend investing. Dividends provide investors with important insights into the financial health of company. Any company that consistently raises its dividend, year after year, is clearly doing something right.
“Dividends may not be the only path for an individual investor’s success, but if there’s a better one, I have yet to find it.” – Josh Peters
Josh Peters is an investor and author of The Ultimate Dividend Playbook – one of the premier books on dividend investing. This quote sums it all up really. Passive income, compounding power, bear market protection – what’s not to like about dividend stocks?
This article is provided for general information only and is not intended to be investment advice. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.