2025-06-02 20:07:00 ET
Dividend stocks are an excellent way to generate investment income in retirement, or if you simply like companies that pay shareholders to hold their stock. I mean, what's wrong with that?
The higher a dividend stock's yield is, the more income you'll get for your buck. Remember, a company sets the dividend amount, and the market, through the share price, sets the yield. An ultra-high yield can be the market's way of pointing out trouble in the underlying company.
There are exceptions. Some types of companies are better at generating cash for dividends than others.
