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Increased
Share Value vs. Regular Dividends
These differing
circumstances highlight one of the main questions you
should ask yourself when considering which shares to
buy. Are you seeking increased share value (capital
gains) or regular dividends?
That is, do you want
your shares to increase in value so that you can sell
them and make a profit or would you prefer to be paid
regular dividends that are greater than the cost of
living?
Clearly, older investors
should weigh their portfolio heavily towards the
security of well-established companies with a record of
paying regular dividends. Though younger investors
should also consider including some of these companies
in their portfolio, they have the option of including
several companies that may experience rapid growth in
the forthcoming years. These companies may not pay
dividends, preferring to re-invest profits into the
company, but a rising share price will enable the
investor to realise a profit.
Next:
Income Level
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