There’s an old investing maxim: The safest dividend is the one that’s just been raised.
And I would agree!
When a company pays a dividend, it is parting with its hard-earned cash.
A dollar that goes out the door as a dividend is one less in the emergency fund.
Before the company declares a dividend, its board must be confident that more profits are coming to replace that payout!
There’s a flip side to this too.
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