More often than not, dividend stocks are the foundation of great portfolios and the X factor that leads to the creation of long-term wealth. That's because dividend stocks offer investors a variety of advantages.
For starters, dividend stocks are a beacon of profitability and have, historically, run circles around their non-dividend-paying peers. This makes sense given that a company is unlikely to pay a recurring dividend if it's not profitable and doesn't have a time-tested business model.
Furthermore, dividend stocks can help calm skittish investors during inevitable stock market corrections.