I like strong companies that pay dividends. Proctor and Gamble is a good example. The company has paid a dividend for 120 consecutive years and increased the dividend for the past 55 consecutive years. If you accumuliate stock in P&G over a long period of time the dividend will eventually provide you with a nice current income. As others fret the markets ups and downs P&G just keeps on growing and pumping out money. No worries!
Contrast P&G to a mutual fund that pays no dividend. What do you do with you mutual fund when it's time to retire? What if you had planned to retire in 2008? P&G increased its dividend in 2008 while most mutual funds were down by half. If you have to sell the mutual fund in order to get cash for retirement you might want to rethink your plan.
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