Myths about dividend stocks

"You have to have a lot of guts to buy BP right now," said Basil Herzstein, a financial planner with Gallers Financial in Rockville, Md. But what about other dividend-paying stocks? Some say it's an ideal time to buy; others say banking on dividends right now is a bad idea.

Lawrence Carrel, author of "Dividend Stocks for Dummies," advocates for dividend-heavy portfolios, saying volatile markets are a ripe time to pick paying stocks. With stock values unpredictable, investors find comfort in knowing that they will at least be paid the dividend even if they lose out on stock value, he said. "More people want the income from dividend stocks now... they've had an awakening," Carrel said. "They are not gung-ho about growth anymore."

Source: Market Watch

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