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November 17, 2006, Newsletter Issue #41: Dividends
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Tip of the Week
If you want to invest in the stock market, but can't stand the thought of waiting ten years or more to start getting a payout, include dividend paying stocks and stock mutual funds in your investment strategy. A dividend is an amount of money that a company's board of trustees pays out to shareholders on a regular basis. Whether or not a company has a dividend paying investments plan is no indication of how well the stock will do overall. If you decide to go with dividend paying stocks, educate yourself about the tax implications. Dividends are taxable and need to be kept track of carefully.
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