Dividend Is Not A Magic Bullet In Investing

Investing in a dividend stock is like seeing someone blowing a balloon. Then once awhile he will rest and stop blowing to let out some air, before continue his blowing. This become a never-ending process. Those dividend-investing zealots will think that dividend is an 'extra' income but to a non-believer, dividends is just returning a percentage of the capital invested.

 

I would prefer a company either working hard to boost their earnings per share or giving bonus issue or scrip instead of giving out dividends as cash.