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When you invest in publicly traded stocks that pay dividends, you invest in companies that can potentially pay you now and later.
Typically, financially healthy dividend-paying companies pay quarterly or semiannual dividends from cash flow. Some also pay a special, one- time distribution that could come from extraordinary profits.
Where do you find dividend- paying stocks? The utilities sector includes companies with long histories of paying regular dividends, but companies in other sectors also pay dividends. Mutual funds* also own them, and must pass dividends from stocks they hold to the funds’ shareholders at least annually.
*You should consider the fund’s invest- ment objectives, charges, expenses and risks carefully before you invest. The fund’s prospectus, which can be obtained from your financial representative, contains this and other information about the fund. Read the prospectus carefully before you invest or send money. Shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results.
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Tax and Financial Solutions, Inc. and LTM Client Marketing are unrelated companies. This newsletter was created by LTM Client Marketing and was not written or created by the named financial professional and does not necessarily represent the views and opinions of Avantax Wealth Management® or its subsidiaries.
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