Why You Should Stick With Dividend Stocks

If I currently own a stock that is trading above a price that I would be willing to pay to purchase additional shares, what is the point of continuing to hold it? In a bit of fortunate timing, four high-quality blue chips stepped up to answer that question in the past two weeks. That right there is what makes a dividend investing strategy so satisfying. I can't break it down any more than that. Everyone knows Procter & Gamble is an excellent company. Everyone knows Exxon is an excellent company. Everyone knows Chevron is an excellent company. Everyone knows Johnson & Johnson is an excellent company.

Look at what happens each year like clockwork once you set aside some capital to acquire ownership in one of these companies: you receive a raise each year that is well above the 3-4% historical rate of inflation in the United States. It is hard to find assets that not only act like ATM machines four days out of the year, but will dispense even more cash your way each year thereafter. That's par for the course with the best-in-class dividend growth stocks.

Source: Seeking Alpha

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