Why Dividends Matter

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Today, Fool.com analysts Anand Chokkavelu and Matt Koppenheffer review Anand's decision to hang on to his shares of Philip Morris despite short-term weakness in the shares today.

Though the 3.7% dividend the company pays investors every year isn't as big as that of other tobacco companies, it's still far higher than the market average and is a huge boon to the long-term investor because of the power of compounding interest.

While hot growth stocks get all the attention, the historically resilient nature of tobacco dividends means they could help you retire rich.


You can read about three more in our premium report "3 Stocks That Will Help You Retire Rich," where we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to start reading.

The article Why Dividends Matter originally appeared on Fool.com.

Anand Chokkavelu, CFA, owns shares of Philip Morris International and Altria Group. Fool contributor Matt Koppenheffer and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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