Question:
Looking as an investor, the safer (yet maybe boring) route is through collecting dividends, and this is a consistent and effective way to accumulate wealth over time. I think that when looking at capital gains you are looking to make more quick money and this can be the case, but it is also the more risky choice. It is might not be the most glamorous way to make money, but the older I get and closer to retirement age I will switch from the risky stock market and buying and selling of stocks to just maintaining my current stocks with well-established companies to keep accumulating money a little bit more safely than the alternative. I currently reinvest some of my payroll money into my company through an employee stock purchase plan that I also reinvest the dividends back into buying more shares. I believe my company is very financially sound and that is one thing that needs to be looked at when investing in capital gains. The economic environment is ever changing which gives dividends that leg up.
Respond to above statement.