IBM (IBM) champions a 3.54% yield which is well above the 2.02% yield the S&P500 (SPY) pays out. Investing for income is a completely different kettle of fish compared to investing for capital gain. For example, a true income investor never sells shares in his or her respective portfolio. In one sense, the price of the stock is irrelevant especially if the stock in question is a dividend aristocrat or has raises its dividend for 20 years plus. With income plays, it is all about protecting the downside.
The last thing an income or dividend investor wants to do is sell his or her shares when the shares are deep underwater. In fact, if the stock's fundamentals are sound, this is when more buying should be done as the yield is almost always much higher when the stock is collapsing. This gives the dividend investor the opportunity to stock up… Read More …