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Myths About Dividend-Paying Blue-Chip Stocks

- By Dave Ahern

Finding blue-chip dividend-paying stocks is one of the best ways to grow your wealth over time. These companies have paid a dividend consistently over the years over a great double compounding effect that is hard to beat. We will discuss some of the myths of dividend-paying blue-chip stocks and why they are in some cases avoided by the investor for flashier, more exciting opportunities.

  • The definition of blue-chip dividend-paying stocks.
  • Accumulating dividends is better than selling shares for income.
  • A hot topic is reinvestment versus dividend payouts.
  • Some of the best dividend payers are "boring" companies.
  • Blue-chip dividend-paying stocks are great wealth-building machines.