It sure sounds nice, doesn’t it? You buy a bunch of stocks, and stocks go up over time. Plus, while you wait for your inevitable long-term capital gains, those stocks pay dividend income to you every quarter. You can even stagger the payments by mixing dividend stocks that distribute their dividends in the first, second, and third month of each calendar quarter.
And, within the S&P 500 Index ($SPX), many stocks pay dividends. Some have done so for many decades, earning names like “aristocrats” or “kings,” increasing their dividend payments each year.
