With just a little research, you can find stocks that have paid — and even increased — dividends for many years in a row. (Keep in mind, though, that not all stocks will pay dividends, and even those that do can reduce or discontinue them at any time. Dividend reinvestment does not ensure a profit or protect against loss.) So, to help boost your share ownership, consider reinvesting the dividends back into the stock, rather than taking them as cash payments. If you do choose to reinvest your dividends, though, you will need to look to other types of investments to provide you with income, assuming you need some income from your portfolio, which may become more necessary during your retirement years. Your financial advisor can help you determine the appropriate investments to help provide this income.
But in any case, if you can do without the current income provided by dividends, give careful consideration to reinvesting them. Dividend reinvestment is not a glamorous investment strategy, and it won't help you "get rich quick," but it can help you make steady progress toward your long-term financial goals — and that's a key dividend in itself.
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Edward Jones Financial Adviser Michael Quinn submitted this column. Quinn's Edward Jones office is at 25 Railroad Square, Suite 201, Haverhill. He can be reached at 978-372-8453.