The Right Dividend Stocks

It’s a funny world we live in. Investments that would have been considered the domain of widows and orphans a decade ago are now downright trendy.I’m talking, of course, about dividend-paying stocks. During the raging bull markets of the 1980s and 1990s and the housing boom of the 2000s, investors gave very little thought to the income being thrown off by their investments. When you could flip a tech stock—or a house—in a couple of months and walk away with a 50% gain, earning a couple extra dollars from dividends seemed a little petty.

Two bear markets and a housing collapse later, investors have come to appreciate the certainty of getting a regular dividend check rather than waiting—and hoping—for the market price to rise. In a volatile, uncertain world, dividends may be the only return you get. This was certainly the case for investors who held S&P 500 index funds last year. Not including the 2% dividend, their return would have been exactly zero.

Source: Guru Focus

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