Should I Buy Stocks Because of Their High Dividend Yield? Featuring Guest Ben Madden
Understanding the Appeal of High Dividend Yield Stocks
Many investors are drawn to high dividend yield stocks because they seem to offer a steady income. But as Mike Garry, CFP® and CEO of Yardley Wealth Management, points out, these dividends might not always be a sign of a stable investment. In some cases, high dividend yields result from a stock’s price drop, which may indicate financial instability in the company.
“A high dividend yield might seem attractive,” Mike explains, “but it’s important to ask why that dividend is so high. Is the company’s stock performing well? Or is it struggling?”
Dividends vs. Growth: Why Some Stocks Don’t Pay Dividends
Madison brings up an interesting question: why do some high-growth companies choose not to pay dividends? Mike provides a valuable insight here. “Many of the highest returning stocks, like tech companies, don’t pay dividends during their early years. Instead, they reinvest profits back into the business, which often leads to substantial growth.”
Considering Long-Term Financial Goals
Mike emphasizes the importance of setting long-term financial goals when investing. “Before diving into high dividend stocks, investors need to understand what they’re hoping to achieve in the long run. A diversified portfolio can often be a more sustainable approach than focusing solely on dividends.”
Meet Ben Madden: Insights from Allied Cleaning Services
This episode also brings in a special guest, Ben Madden, the owner of Allied Cleaning Services, a local business with over 40 years of experience in Yardley. Ben shares how his company has adapted over the years, including adding services like power washing and deep cleaning, which keep Allied Cleaning busy even during off-seasons.
Balancing Tradition and Innovation
Ben reflects on the balance of staying true to his father’s legacy while introducing new services to meet modern demands. “We’re using the same cleaning prep methods that my grandfather taught us, with better equipment,” he explains. His team’s focus on quality has helped them retain a loyal customer base.
Power Washing and Window Cleaning: The Perfect Duo
One of Allied Cleaning’s unique offerings is its combined power washing and window cleaning service. Ben shares why this combination offers a dramatic transformation for homeowners. “For around $1,000, you can refresh the entire look of your home. That’s something painting or other costly renovations can’t achieve for the same price.”
The Benefits of Referrals and Community Support
For Ben, referrals from local Facebook groups and community pages have become essential for business growth, surpassing the effectiveness of traditional platforms like Angie’s List. He highlights that maintaining a reputation for quality service has been key to sustaining his family’s business.
Quality Over Quantity: Growing Slow but Steady
When it comes to expansion, Ben prioritizes quality over rapid growth. “We want to ensure our work meets the highest standards, even if it means turning down jobs or growing at a slower pace,” he says. This careful approach has allowed Allied Cleaning to maintain its trusted reputation.
Final Thoughts
As Madison wraps up, she underscores the importance of making investment decisions that align with one’s goals and values. Whether it’s choosing dividend stocks or a reliable cleaning service, taking the time to evaluate options can make a significant difference.
Connect with Allied Cleaning Services
If you’re interested in Allied Cleaning’s services, you can find more information on their Facebook page or visit alliedcleaning.com. You can also reach Ben directly at (215) 493-0759 for any cleaning inquiries.
