5 Reasons for an investment fund, which pays monthly dividends compared to one focusing only on growth

Growth and income are two of the big mutual fund investment styles. Here are five reasons for an investment fund, which pays monthly dividends compared to one that focuses only on growth.

1. Receiving profit in the present is better than empfangende promised profits in the future. To make a profit is what is going on. If you owned the company, which is representing what has investments, earnings should input a welcome event. Stock dividends are the way successful companies share profits with shareholders. Growth investing is an alternative to the dividend investing. Growth stocks little or to pay no dividends. Companies need to operate their capital, including the profits of the business. With growth stocks, investors rely on an increase in the future course of the shares to reward their risk. The future is less secure than the present.

2. Monthly dividend reinvestment allows you to increase your property shares. If it is, more stocks to your portfolio are continuous reinvestment of the dividend,-added, especially in times of market decline, if the prices are lower. At a time, the decline is the investor growth still waiting and hope that the stock price increases. The investors the market price needs to go higher than the price he or she originally paid to receive a reward of investment growth. The dividend investor not. The dividend itself is profit.

3. Profits tax rate (slower than normal income tax) applies currently for dividends from the shares for more than a year.This is the same rate on profits from the sale of the shares of growth-has a greater investment risk for.

4. Dividends historically represent good value. It is estimated that in the last 100 years, forty percent of the profits of the stock market came from dividends. The remaining 60 percent of the market is profit rises Aktie--an unpredictable result. In real estate is a good example, as see income with growth in comparison. A property has income from rent, is that income is often used to determine the market value of the property. It is a known return on investment. If the property has no income, the market price on the basis of the price of other similar characteristics and the needs of the individual purchasers is formed. This estimate of the price is less secure. Predictable return has a great attraction for value.

5. Stocks that pay dividends can also increase in share value. The price of a stock that pays dividends is reduced by the amount of the dividend if the dividend. But the stock price can benefit, as a growth has, from increased demand for property investors, because dividends are only part of the share price. However, for a stock, there are always market risk and no guarantee of investment results.

The payment of dividends is the success of a company on the market. Why not join proven winners?

Howard Feigenbaum is registered principal and owner of SharePoint master, a broker-dealer company, the monthly dividend funds.

"You know, the only, what makes me joy?" It is to see, my dividends come inch "-John D. Rockefeller"

This article is a general discussion on the topic and it should not prompt or specific investment advice.

Copyright 2011 SharePoint master

http://www.monthlydividendcheck.com/

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