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Generally, there is the fallacy that dividends are free money, by which I mean that many investors strictly buy dividend stocks to get the dividend income or bonus, says Dejan Ilijevski, investment advisor and president at Sabela Capital Markets in Munster, Indiana. Rather a dividend is simply a transfer of wealth from the company's books to the shareholder.

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    Quiz

    Are you a quotes master?

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    Who said, "When a man knows he is to be hanged in a fortnight, it concentrates his mind wonderfully."?
    A Queen Elizabeth II
    B Roy Rogers
    C Samuel Johnson
    D John Wayne in "The Searchers"