Dividends: Dividends For the Long Run

April 4, 2024, 11:16 am EDT

Dividends For the Long Run

Many aggressive traders and investors chase for a big profit in a short period. They buy stocks with high volatility and momentum in either direction. There could be a profit in a certain time.  But, as time goes by their portfolio would suffer significant loss in most cases. 

Some stocks pay dividends to their shareholders as rewards for the long term. Usually, these stocks are well-established. Thus, it could be slow to grow without excitement of new products or services. However, steady income like dividends and steady climb also offers stability and low risk. In a tough investment environment, these stocks are a safe harbor to park cash with returns. 

For example, we bought Verizon (VZ) on 10/31/2023 at 35.03. Up-to-date, it has accumulated about 23-24% unrealized gains for the past 5 months as shown. 

It was a solid and easy ride along the way. 

Both Verizon (VZ) and AT&T (T) are communication service companies where most smartphone users depend on their services to use phones or apps on their telecom devices. It is very unlikely these two companies will collapse or bankrupt suddenly. Both stocks provide above 6% dividends which are major advantages for many institutional investors or funds. 

We believe both VZ and T are worth of consideration to add to the portfolio. 

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