Dividend Divas

With uncertainty surrounding the durability of the economic recovery and Europe's lingering sovereign debt problems, volatility is back in full force. In stormy seas, it's important to have dependable income streams from dividend-paying stocks to steady your portfolio. Although dividends generally mean reliable returns, they can also signal good health for a company -- especially after the worst year on record for dividends since 1955. Mature companies that still have more cash than they need are some of the strongest businesses out there.

What's more, companies took steps during the depths of the recession to cut payroll and other costs and widen their profit margins, equipping them with a lot of cash.In fact, nonfinancial corporations now hold a record $1.8 trillion in cash on their balance sheets as of the end of March, according to the Federal Reserve. That means corporations are poised to either invest that cash, or return it to the shareholders in the form of a dividend.

Source: Motley Fool

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