Stock Investing Basics: Dividend Stocks - Top 5 Reasons to Own

[TheStockSimpleton]

The yield support for a dividend stock occurs when the relative price of the stock has trended lower and now the dividend paid out by the company is more attractive to investors since it represents a higher percentage of the overall return. In your example, despite the stock losing ground, the dividend yield is very attractive for new investors to buy the stock. This is what is meant by having a cushion against a continued drop in stock price.

[BlkbeemerE46]

im new to investing an had a lil question if you buy lets say 1 share for 100$ and at end of 3 months you get 30$ my question is what if at end of 3 months that share price droped and is only a 50$ now do you still get your 30 bucks at end of 3 months is that what you ment by price drop cusion so really instead of loosed 50$ from price drop u have lost (technically) 20$ because of your now 50$ share plus 30$ dividend = 80$ you invested 100$ so you only lost 20$ am i right or how does that work?