There are no "sure things" in stock investing. Even companies that have been in business for decades can find themselves going under beaten by new competitors, changes in technology or just management incompetence. But there are ways to reduce the risk. Instead of buying a company with high growth and a triple digit P/E, you could buy a more "conservative" stock. One factor that can make a company a more conservative pick is if it pays a dividend.
There's a reason some investors thought the world had ended when Apple started to pay a dividend. Some think the paying of a dividend means the end of a company's growth phase. Basically, a dividend equals "boring." But the dividend can be an important clue when looking for stocks. The thinking goes that if a company pays a dividend, that is real cash that has to be sent out to shareholders. A company can't fake that. Either it has the money or it doesn't.
Source: Zacks
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