I have some cash in the bank I am ready to invest.
My company has been profitable since 20 years and provides a generous dividend of roughly 8% per year. So I though buying some stocks could be a good operation.
What I fear is the evolution of the price of the stock. Even if the dividend is good the price of the stock could go down an cancel my profit.
- attractive dividend yield
- over a period of 10 years the dividend reimburse the initial investment
- I am inside the company so I know how it works and I believe it might still be profitable for several years
- dividend yield is not guaranteed and could be reduced in the future
- stock price might drop and cancel dividend earnings
Would it be a sound investment or would it be more clever to create a portfolio of several companies offering a similar dividend to reduce my risk?