The Compelling Case For Dividend Paying Stocks

Some have been warning that with the Federal Reserve likely to soon raise interest rates, income-producing stocks will no longer be appealing. Here are 5 reasons I still favor dividend-paying stocks:

1. Dividend income and its reinvestment has historically comprised a significant portion of long-term stock gains. 2. Dividend-paying stocks actually have delivered better long-term total return performance than non-dividend payers by a score of 10.4% per annum. 3. Dividend-paying stocks have enjoyed lower volatility. 4. Dividends today compare very favorably to income that can be generated from more traditionally conservative investments. 5. Dividend-paying stocks have performed well in the past in periods of rising interest rates.

Source: Forbes

Related Articles:
- 5 Stocks With Strong Dividend Growth Metrics
- Are Defense Stocks Good Defensive Stocks?
- International Securities For A Diversified Income Portfolio
- 5 Dividend Stocks That Gave Me A 20%+ Annualized Return
- 6 Rainy Day Dividend Stocks