MO - 3 Beaten-Down Dividend Stocks You Can Trust
While investors often covet growth stocks, it's dividend stocks that are usually the heart and soul of any successful long-term portfolio. That's because income stocks bring a host of comparative advantages to the table that can't be beat.
For one, dividend stocks have a history of outperforming their non-dividend-paying counterparts. If you think about the logistics of this, it makes sense. After all, a company is unlikely to continue paying a dividend to its shareholders if it doesn't foresee continued growth and profitability. In effect, a dividend acts like a beacon to alert investors to a time-tested and often profitable business.
A regular payout can also be just what the doctor ordered to calm the nerves of skittish investors. Since stock market corrections are inevitable, it's important to consider the role that dividend payouts can play in helping to partially hedge the often temporary downside brought on by a correction.