Investing mainly for dividend income than capital gain

Tweet

It is better to invest mainly for dividend income than capital gain. When the share price does not increase much, you get your dividend income. If you want to buy low and sell high, you are likely to pick penny stocks. Many penny stocks are not going to enjoy a sustainable rise in share price. They may see a day or two of spike in share price, and then the share price will fall even lower than your buying price. That means you better not go for a short vacation because you will miss out the opportunity to profit. If you are investing for dividend income in an established company, you need not check the share price every day. You just have to check quarterly for the announcement of dividend payout and payment date.