With a turbulent year behind us, dividend stocks can offer another tool for investment success
As we close out 2017, it’s good to remind ourselves of what
worked, and what didn’t. This past year, though, makes this introspective
exercise rather tricky. Although Wall Street early on forecasted a rough 2017,
the end result was quite the opposite. Benchmark indices hit all-time records,
while most sectors witnessed tremendous optimism. Who needs dividend stocks at
a time like this?
This also means that inferior investment strategies were
masked by secular bullishness. The new year may not be as forgiving, which is
why I’m recommending investors to get selective. Fortunately, with dividend
stocks, you don’t have to feel pressured into always picking winners.
At its core, choosing the right dividend stocks to buy is
about options. Although picking high-flying growth companies is the sexiest
endeavor, it isn’t always the smartest. With passive-income yielding firms, you
get the potential for making capital gains, and also residual payouts to
bolster your position. During a down period, dividends can also help you ride
out the storm.
But don’t mistake these yields as “boring” strategies. Like
any investment class, you can dial up the risk for the chance of greater
rewards. This is why picking the most appropriate dividends stocks to buy is so
important: no one knows your investment style better than you!
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