Common Myths In Dividend Investing

I’ve heard 100’s of crazy myths get thrown around about dividend investing throughout my investing career. Let me bust a few...

“Experts” are LYING to you about dividend investing.

I want to set the record straight!

So sit tight and let me bust some of the biggest myths I’ve heard.

Myth 1: High dividend yields are value traps.

Most investors see a high yield stock and immediately assume It’s too good to be true. 

They think it’s a declining company that will have to cut it’s dividend just to survive.

However, this is, well… not true.

You need to look deeper!

If it has a stable free cash flow payout ratio, that high yield might actually be a buying opportunity. 

The key?

Avoid businesses with crumbling fundamentals and seek out companies with sustainable and growing cash flow.

That’s why you need all the data behind the stock!

I built DividendData.com to help me identify these opportunities.

Altria (MO) is the perfect example.

I bought the stock when it had a 10% dividend yield!

Most investors saw that as a warning sign.

But, NOT when you look at the financials.

Altria had strong, reliable, and growing free cash flow! That same year, the free cash flow yield was over 12%!

Altria’s dividend payment was sustainable, in line with their stated goal of 80% free cash flow payout ratio.

That dividend payment is actually growing!

Altria increases it’s dividend every single year at ~4%!

This stock now pays me $2,280.76 in annual dividend income!

Plus, the stock price has gone up and I keep reinvesting dividends to increase my ownership.

As I’m writing this, I have a 53% total return.

Not bad…

Altria (MO) is my biggest dividend payer in the portfolio by far, only growing each year by reinvesting the dividends.

A true dividend snowball.

Myth Busted…

That was fun. Let’s do more…

Want Myth #2 or #3? You’ll have to wait for tomorrow’s email.

My advice to you

Don’t let common myths discourage you from investing.

You control your financial future!

Stick to your own strategy, keep learning, and make sure you have the right tools to make your own investing decisions.

That’s exactly what DividendData.com is built for.

It gives you all the tools you need to make smart investing decisions.

You're already planning your financial future. Why not invest in trying to improve your return?

If we help you identify just 1 slightly better stock, then it pays for itself.

Let’s Build Wealth Together…

P.S. Right now, you can get $150 off, but this deal won’t be around forever. If you want in, act fast.

P.P.S. Your price is locked in for life, and i’ve added a 30-day money-back guarantee— so zero risk in trying it out.

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Best regards,
Zach
Founder, Dividend Data
https://www.dividenddata.com/

Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter