But the Value of an Investments can be Cut in Half Overnight!
Yes, that's possible and it happened to us on some stocks as well. If a company lowers
(or even halts) dividends, the stock value takes a plunge as well, hurting you doubly.
Then again... pretty much everything we ever bought halved in value as soon as we
walked out the store. If you buy a new car, it pretty much halves in value just driving
of the dealerships' parking lot. A used pair of shoes is typically worth only a fraction
of the price we just paid for them new. At least most stock we own actually increased its
value over time and oftentimes increased dividends as well. So, to us, buying stock doesn't
feel inherently more risky than buying anything else.
Even now, with a pandemic causing a lot of unemployment and bankruptcies in the world and
initially making the stock prices drop severely, a steady income has been coming in from
We think it's very cool to be able to buy stock for say $1800, get paid a dividend each month
for as long as we like and if we want to get rid of it, sell it for hopefully at least the
original amount we put in. But sure, it could be worth less as well at the time you want to sell.
Again, this is how we feel about it. But we are not financial advisors and we will not advise
you to put your hard-earned money into stock that, indeed, could wipe out your entire investment. And
you should know better than to take investment advice from some random guys on the internet anyway.
You really need to read up and get independent advice before you decide to get into dividend investing.
We have made our choice and DiviDragon was born as a result of that choice and if you ever decide to
start dividend investing as well, we'd love to welcome you aboard.