
Dividend investing has many detractors. Some say that dividend stocks are a zero-sum game since the company pays dividends using its money, meaning its overall value is impacted to appease shareholders. Another very similar argument is that the value of the stock decreases proportionately to the dividend on the payout date. Last and most often used of all, dividend stocks don’t experience much growth, leading to flat capital appreciation.
Now, while I can provide counter-arguments against the points laid out against dividend stocks, I think it’s far better if I show you that you can find companies that have demonstrated above-average dividend income and capital appreciation.