Dividend Investing Is a Straightforward Way to Produce Income

Unlike most stocks, where you only make money by selling them for more than the purchase price and any related commission, dividend stocks pay you for simply owning them. Since you’re receiving regular cash payments, you can score a worthwhile return even in a weak market. Even better may be buying them in a strong market, when you’ll likely enjoy share-price appreciation plus dividend income.

Of course, gaining the dual benefits of capital appreciation and dividend income under all conditions is not easy. In a down market, dividend stocks drop, too. So, you must be prepared to hold your stocks through market downturns. Further, it is important to pick solid companies with strong business prospects that will survive whatever the economy throws at them.

Source: Townhall.com

Related Articles:
- 7 Higher Yield Dividend Growth Stocks
- 8 Select High-Yield S&P 500 Dividend Stocks
- A Winning Investment Strategy
- 7 Dividend Stocks With A 20% Yield In 20 Years
- 5 Industrial Strength Dividend Growth Stocks With Yields In Excess Of 3%