Virtues of Buying Dividend Stocks

Sometimes you will hear a “buzz” about this or that investment class, and recently there has been considerable “buzz” surrounding dividend stocks. With today’s rock-bottom interest rates, it is easy to understand why.

  1. Baby boomers need income.
  2. Bonds, money market accounts and CDs aren’t providing much of it.
  3. Dividend stocks offer the potential for greater income.
  4. If profits grow, the dividend payments may increase.

Decades ago, stock market investing was not all about chasing the return – it was about reaping the dividend. Today, people are getting back to this fundamental goal.

If your investment priority is playing defense, dividend stocks may help. They can turn out to be a good play in bull and bear markets. The fact that they produce dividends may even enhance their share price in volatile times.

What do you want from your portfolio – the negligible yields currently produced by Treasuries or CDs, or the potential for something better? The answer is obvious, and for many investors these days the answer is dividend stocks. Have I made you curious about their potential? Simply call me or email me to learn more.

 

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