The Fiscal Cliff Deal Saved Dividend Stocks

The months-long wrangling in Washington over whether to extend expiring tax breaks went down to the wire, but eventually, lawmakers got the job done. In doing so, they also removed what could have become a huge threat to millions of investors who rely on dividend-paying stocks. ncreasingly in recent years, income-hungry investors have come to depend on dividend stocks as a key component in their overall investment strategies. With banks offering next to nothing for savings accounts and interest rates near historic lows on other income-producing alternatives like bonds, even conservative investors have had little choice but to embrace stocks for their lucrative dividend payouts.

Yet without a deal, that final refuge for income investors could have disappeared. Despite the worries of December, dividend stocks have emerged from the fiscal cliff debate stronger than ever. Given how hard it is to get income anywhere else, having dividend stocks in your portfolio is likely to remain an essential part of making ends meet for those who live off their investments.

Source: Daily Finance

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