Mr. Xie thanked the mid-autumn gift box sent by the bulls, and the financial engineer saw that the bulls were doing well, and they really liked it.
Why Choose a Dividend Fund?
I have mentioned more than once in past posts that I really like dividend funds, but why I like dividend funds is mainly for two reasons:
1. Provides stable cash flow
Dividend holders receive regular monthly dividends, equal to an additional “salary” and a guarantee on the rest of the investment. In Hong Kong, many people choose monthly shares to collect dividends, and the practice is similar.
But for just one stock, the risk is greater, as many people offer on a monthly basis $HSBC HOLDINGS (00005.HK)$, the suspension of dividends in 2020 directly led many shareholders to demonstrate at the door of HSBC. Even to the shock of the HKMA, the Securities and Exchange Commission, HSBC's share price plummeted.
Dividend funds that hold more benchmarks buy a basket of assets where an accident in one of the benchmarks is less likely to result in systemic risk.
2. Passive asset reallocation
Since the fund's dividends are drawn from the capital, directly subtracted from the net worth of the net capital, and many friends say “put the money in the left pocket in the right pocket”, many friends do not like dividends.
But from the other side, when the market falls, the dividend is to passively withdraw funds and make small stops. And when the market rose, the withdrawn funds made a profit on time.
...