Dividends are being cut at the fastest pace in at least 50 years, and many of the reductions are coming from U.S. companies investors have been relying on to provide income during the recession.
Here’s some advice: DO NOT RELY UPON OTHERS FOR INCOME! It’s called being self-reliant; you can learn a lot at the Self-Sufficient Living Blog.
Besides that, from a previous Analysis of the Stock Market Adjusted for Inflation, your investment returns barely (if that) keep pace with inflation, so the only real source of increase comes from the dividend payouts of stocks, which is usually between 1% to 3%. Well, now those dividends are getting cut.
Simply put, the Stock Market is legalized gambling, and you are betting on how well a company may or may not do in the future. Anyone who tells you otherwise is a fool. You do not have any “ownership” in the company as financial planners would lead you to believe. Owning shares of stock does not give you any control on how the company is run, any decision making, nor anything. Owning a share of stock is your “bet” on the table for how the game of the company will play out.
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