During a shareholders meeting in 1999, Warren Buffett lamented that he could generate 50% returns if only he had less money to invest. He couldn't compound $100 million or $1 billion, at a 50% rate. That's because it's the smaller, faster growing companies that typically offer the highest returns.
As much as I enjoy the potential for growth of junior ventures, some good old reliable dividends provide cash flow to an otherwise capital gains oriented approach.
REITs and utilities generally weather the storms of market turbulence quite well in terms of stability of regular cash flow, but are certainly not immune to market forces or sector or geographical weakness in terms of share price.
Having cash on hand and coming in every month can help one take advantage of those opportunities without selling something else first or waiting for an exit target price before one can take action.
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