Use dividend-paying stocks to increase both income and capital--and avoid the pitfalls that can trap the unwary! Dividend payers! Think of income returns potentially greater than bonds...stocks that hold their prices better during market declines and have outperformed the universe of equities over decades...companies that can compound your assets by paying you in shares. Think of more favorable tax consequences.... There are, however, traps for the unwary. This article will deal with them....
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