Following two roller-coaster markets over the past decade, it's natural for investors to seek more stable and less stressful stock strategies. Dividend-paying stocks provide you with an opportunity to achieve both. Among other things, dividend-paying stocks:
- Are less volatile as a group than their non-dividend-paying counterparts.
- Provide you with a real return right away; with non-dividend-paying stocks, returns aren't realized until you sell.
- Allow you to choose what to do with the cash payouts -- reinvest in the stock, put them into savings, or buy groceries ... it's up to you.
- Offer you an inflation hedge when companies increase their payouts.
Source: The Money Times
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