Quite often, newcomers to investments want to have a dividend portfolio. Perhaps some kinship between the mechanisms of the dividend portfolio and the bank deposit attracts them to such investments.
The body of the bank deposit gives a certain percentage for the year and the funds invested in shares give a dividend income. There is a false feeling that you can invest large sums in dividend companies, receive dividends, live on them and not worry about anything. However, a dividend portfolio is far from the best approach for generating income from the stock market.
Moreover, often dividend stocks are dangerous for your portfolio and can lead to significant losses. Let’s analyze the reasons.
A large and complete article was prepared by Alexey Ashikhmin, a portfolio manager of our company