(Stefon Walters)
Diversification is among the key pillars in funding. Not solely should you could have diversification throughout industries or firm dimension, however a part of having a well-diversified portfolio additionally contains having shares that pay dividends. Youthful firms do not often pay dividends as a result of they should reinvest the cash within the firm to continue to grow, however older, well-established firms often pay dividends to reward shareholders for holding on to the inventory.