One of the key advantages of dividend stocks is their potential to enhance total returns. While stock prices can be volatile, dividends provide a consistent income stream that can help offset market fluctuations.
So, what should you consider when buying income stocks? Dividend growers, companies that consistently increase dividend payments over time, offer higher returns. Typically, they have established businesses and are in a healthy financial position with robust cash flow growth. In volatile markets, dividend growth can generate higher returns while reducing risk.
A history of dividend payments indicates a quality business likely to generate higher long-term returns. Here are stocks to buy for income investors to supplement earnings from other sources.
This post appeared at Dividend Stocks Research.