Dividend stocks can offer another tool for investment success
No matter where we are in the cycle, it’s always good to
remind ourselves of what worked and what didn’t. In 2017, while Wall Street
forecasted a rough year, ended with quite the opposite happening. Benchmark
indices hit all-time records, while most sectors witnessed tremendous optimism.
In 2018, the long-running bull market took a breather as investors switched from
risk-on to risk-off. Occasionally,
inferior investment strategies are masked by secular bullishness. The rest of
the year and into 2019 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!
I sometimes read some new articles if I find them interesting. And I found this one pretty fascinating and it should go into my collection. Very good work!
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