Subject: Dividends
Was chatting with my father this holiday and the topic of dividends came up. He is drawing down his portfolio and spoke about a key idea which favor dividend paying stocks - predictability. He spoke about the confidence that he would never have to sell a stock when the market was down (and a downturn could last quite a while) and not having to keep low return cash on hand (this has changed a bit this year) to buffer things.

The "cost" of holding say 2-3 years of cash as a safety net is "not nothing". With dividends funding your cashflow you don't really need to hold any extra cash.

Something to ponder...

tecmo
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