Why dividends make good stocks safer

Founder and Publisher of the Switzer Report
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There are two investment rules you cannot break if you are to run your own investments inside a self-managed super fund. The first is you need a great investment strategy and the second rule is you have to stick to your strategy unless your circumstances change.

Jack Bogle, the US legend of finance, who created a ‘little’ business called Vanguard, has often said: “Buy right and sit tight!” Stockbrokers hate this advice because it undermines how they make money – having clients that chop and change trying to buy right and 'sell right' – but that is a difficult game.

Lots of fund managers do this or try to do this and this is why the majority of them don't beat the S&P/ASX 200 index.

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