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Investing For Dividends

By Jim Berg & Marcus Padley 19 Feb 2012 11:30 PM

 Several brokers have commented recently on some great dividend paying companies. One stated that the banks were such great companies to hold over 2011 as “where else could an investor get such a great return?” 

So let’s have a close look at the return from holding the ‘big four’ in 2011 and the ‘income’ generated. And keep in mind that many ‘expert analysts’ believe that equity investment should be focused on growth. 

We’ll assume that a conservative investor took the ‘expert advice’ and purchased an equal dollar amount of the four major banks on the first trading day in January 2011. They held the shares for the entire year and collected the dividends.

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