Long term investing

Since you have decided to become a long term investor , companies with high dividends should be your priority (as long as they satisfy other requirements such as. D/E, P/E, ROE etc). The main reason is that if you invest in companies thst offer good dividends you are protecting your investment from a future crash. For example lets say that 40 years ago you had began investing into good companies which do not offer dividends in case of market crash as in 2009 or now with COVID-19 the value of your portfolio would reduce maybe even 80%, vanishing your valuable retirement portfolio. On the other hand someone who has invested in companies with dividends in his late years does not really vare about the market price as long as the company continued to pay dividends. That is my understanding of thr market. Of course a wise investor would diversify with multiple stocks from different sectors and also buy bonds. Hope that the above were helpful.

/r/stocks Thread