Hello again!  It’s time for another ‘Article of Interest’ post.  The last one was posted last month, so by now, surely you’re ready for another.  This is now the 11th post in this series.

To recap the intent of this series… every now and then, when perusing investing or personal finance articles across the Internet, I come across what I call an ‘Article of Interest’, or ‘A of I’ for short.

I decided it might be helpful to share a link to the article in case some of my visitors would find it of interest as well.

In most cases, the article will focus on dividend-paying stocks or dividend growth investing (DGI).  However, other finance-related topics might be highlighted, too.

Now that we are up-to-speed, let’s see what this A of I is about…

 

Link Overview

Today’s link is for a page I came across over at the Learning Center at Fidelity’s website.  There’s no real date tied to the release of the post that I could see, but given a date reference I saw in the post, I would suspect it’s about a year old or so.  However, the information in the post isn’t really time sensitive, as it’s intended to educate the reader on dividends.

The post is entitled “Why Dividends Matter”, but I didn’t really find that to be the focus of the post.  Instead, they seemed to cover various aspects of dividends in general.

Topics include:

• payback (via dividends) on your initial investment
• the relationship between dividends and market value
• the ex-dividend date
• dividend-capture strategies

 

https://www.fidelity.com/learning-center/investment-products/stocks/why-dividends-matter

 

I found the section covering payback on initial investment and its Dividend Payback Matrix to be the most interesting.  So check that out!

Given a choice between dividend growth rate and dividend yield, I’ll lean toward dividend growth, at least in this pre-retirement stage of my investing.

However, if you can find a stock that provides both, that’s great.  Such stocks do exist.  Unfortunately, it can be hard to find a decent entry point for such stocks, as they are often overvalued.

 

It appeared to me there was an error in the article when the ex-dividend dates were being discussed.  Buying on a ‘Tuesday’ was mentioned, but I believe they meant to print ‘Wednesday’.

Despite this, there appeared to be some solid dividend details throughout the post, especially for a beginning dividend investor.

 

I hope you find the article useful and/or enjoyable.  As always, please share your thoughts once you’ve had a chance to read the material.

See you next time…