The roller coaster ride that stocks rode in 2018, particularly in December, has shaken the faith of some investors. After all, it’s hard to watch a year of growth disappear in just a few days or even a few hours. Despite this volatility, 2019 should still be a good year to invest in stocks, but it makes sense to look for ways to combat volatility. One way to do this is by investing in dividend stocks.
For investors who lived through 2018, the stability dividend stocks provide many benefits. First, when companies pay out dividends it is generally seen as a sign that a company is financially healthy. A dividend can also be seen as a key driver of a stock’s total return. But the reason why even the most growth-oriented investor should be considering dividend stocks at this time is that they can offer potentially strong returns that can smooth out the effects of volatility.
Once a company starts to pay a dividend, their stock becomes less volatile because the dividends provide investors with consistent cash flow, and once companies issue dividend they will make every effort to maintain that dividend. In that way, the stock of dividend-paying companies will sometimes act similar to a bond instrument.
In this slide show, we’ll take a look at seven dividend stocks that offer investors the opportunity for healthy dividend yield (in some cases, the dividend yield is higher than a 10-year Treasury bill. You’ll also get to see why these companies have something to offer beyond their dividend to make them appealing to growth-oriented investors.
Click the "Continue to Slide #1" button to view the first company.
