"I have a problem every time I look at investing for dividends. With an investment of $100,000 this will only pay $2,920 a year. That hardly seems worthwhile--that's not exactly a life-changing sum. Especially when these days you can get 4.75% on 20 and 30 year Treasury bonds.

That's about the same you'd get MONTHLY from Social Security, if you are retired.

Well, you do get some capital appreciation I guess. But if you are going to hold forever for the dividends then capital appreciation does not matter."

There are obviously different flavours of dividend investing that people can often tailor to their own tastes (but understandably will not suit all investors). If you are settling for a 2.9% yield on purchase, then presumably you are factoring in a growth of those dividends to occur over time too?

Berkshire Hathaway FAQ

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