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Firms that cut dividends can be attractive income investments

Trying to maintain the payments at an unsustainably high level can be much worse in the long-term.

Often, companies paying attractive dividends will be those that no longer benefit from reinvesting their profits, whereas companies with significant growth opportunities tend to use their profits to grow the business.

IT may seem counter-intuitive but companies that have cut their dividends can be good sources of future income.

An important part of income investing is receiving dividends. A dividend is the portion of a company's profits that is returned to shareholders.

The payment of dividends...

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