Equity Dividend & Income Strategy
Robert Bender & Associates dividend and income strategy applies the same rigorous screening process we use for all equity selections. These portfolios are invested in dividend paying stocks that exhibit high-quality earnings per share, cash flow, and balance sheets. We select companies with the ability to maintain their dividend payouts, and ideally raise them over time.
If clients seek tax-free income, our dividend and income portfolios can also be constructed using tax-free debt instruments such as municipal bonds.
Many people invest in dividend-paying stocks to take advantage of consistent payouts and clients can elect to reinvest dividends to purchase additional shares of stock. Companies with rising dividends typically generate consistent cash flow. These companies are often well established and their stock prices tend to be less volatile than the market in general. Once a company has the reputation of delivering rising dividends over time, it tends to work hard to maintain dividend growth for its investors.
As many dividend-paying stocks are perceived as lower risk, these stocks are an appealing investment for both younger people looking for a way to generate income over the long haul, and for people approaching retirement - or who are in retirement - who desire a source of retirement income. Contributing further to investor confidence is the relationship between share price and dividend yield. If share prices drop, the yield will rise correspondingly.
Dividend-paying stocks remain an excellent and reliable investment vehicle. They're a stable option for investors in an increasingly volatile market and usually prove to be strong long-term investments. Incorporating these stocks should be part of most investors' wealth management plans.