IndependentInvestor Newsletter 078C of 04 01 2010 

Today's quote: Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.Warren Buffet

Hello [NAME],

This is our seventy-sixth newsletter on current events and new developments, always from the viewpoint of the independent investor. If you are a new member, click here for general information about our newsletters.

This week welook at the advantages of dividend investing.

We hope you enjoy it.

Six advantages of dividend investing: a critical assessment

What are the benefits of dividend investing? In this commentary, we look at the six main arguments put forward by proponents of this approach to investing: a source of regular, tax-favored income characterized by above-average returns, offering down-side protection in bear markets, facilitating dollar cost averaging investing, and inducing corporate management to deliver more stable, better-reported earnings. What’s not to like? The arguments seem compelling, but on second look, lose some of their luster. In a subsequent commentary in our series on dividend investing we will look at the disadvantages.

To read the balance of this commentary, please click here to access the full text on our site.