Income Investments Have Lower Volatility

7 Reasons to Invest for Income -- Reason #2

Don't envy my great retirement -- Join the fun!

Click to discover my secret to ever-growing income from investments for life -- whether the stock market goes up or down

For example, the price of bonds can and do go up and down, but normally only in response to changes in interest rates in the overall economy. These do change over time. But bonds display nowhere near the daily up and down price bounces of stocks.

Low Volatility Isn't Really Important, but Makes People Feel Better

Stocks that pay dividends are less risky than stocks that don't. Companies that pay dividends tend to be bigger, older and more established than those that don't. They've survived for years, so they're less likely to go out of business. They're still growing, but they're already too big to grow dramatically.

Therefore, in a bull market the market prices of dividend-paying stocks don't go up as high or as fast as the small, glamorous, "sexy" growth stocks of small companies with good stories.

However, in a bear market their stock prices also don't go down as far down as the small, now-in-desperate-financial-trouble stocks that need all their cash just to make their payroll.

This means that dividend-paying stocks are less risky than the market as a whole.

Next: Reason #3 -- Perfect for Tax-Deferred Accounts

Now download The Death of Capital Gains Investing, your first step toward experiencing for yourself the joy of securing your retirement through income investing!

It's easy. Just enter your first name and email address into the form below.

(NOTE: After you click the button, you'll be taken to a thank you page with the link to download your free report.)

spam-free graphic