Top 3 Dividend Stocks Offering Stability to your Portfolio in 2016

The S&P 500 and the Nasdaq indices have finished in positive territory over the last two days, though it doesn’t quite make up for the train wreck that has been the start of 2016. Because of China’s faltering growth and the sharp drop in oil prices over the last year, the world is fearful of an economic decline. Both of these factors gave the market plenty of bad days in 2015, and it seems that these concerns are going to preoccupy much of the spotlight in 2016 as well. To help bring stability to your portfolio, you should consider picking up some reliable dividend stocks.

Dividends are a great way to pick up consistent returns, regardless of how the market is doing. Even if we have a sideways market like last year, you will still pick up your dividend income. It’s worth noting that dividends become a lot more attractive when interest rates are low. Dividends are not guaranteed, so it’s wise to check up on a company’s dividend history. Do this so you can get a sense as to how reliable the company you invest in is with regards to paying out cash to investors. These three companies have a fair track record with regards to their consistency in paying dividends. They each carry a yield of 6% or better: Bank of Montreal (BMO), New Residential Investment Corp. (NRZ) and Frontier Communications Corporation (FTR)

Source: Zacks.com

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