There are many reasons why investors may want to look at dividend stocks to buy in this market. Earning passive income is great in good times and in bad. That’s because in difficult times like this, the downside many investors would otherwise see via valuation compression can be muted by the cash dividends paid by many companies.
Indeed, it’s generally a good idea to try to get a return on any investment. By building up a cash position through dividends, investors can buy dips when available, and also diversify their portfolio from time to time.
With inflation appearing to have peaked and fears of a recession dimming somewhat, investors have some positive catalysts to look forward to. Thus, we could have some capital appreciation in the cards for 2023.
We’ll see. But for defensive investors, allocating at least a portion of one’s portfolio to dividend paying stocks has proven to be a great way to go. Here are three such stocks I think are worth considering right now.
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