Today we’ll take a closer look at Swiss Water Decaffeinated Coffee Inc. (TSE:SWP) from a dividend investor’s perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
With Swiss Water Decaffeinated Coffee yielding 4.1% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. It would not be a surprise to discover that many investors buy it for the dividends. There are a few simple ways to reduce the risks of buying Swiss Water Decaffeinated Coffee for its dividend, and we’ll go through these below.