Dividend stocks are an important part of your investment portfolio. Growth stocks are a great way to grow your overall wealth over a long period, but adding dividend stocks to the mix provides an ongoing income flow. You can use that income to help cover your living expenses, or you can turn around and plow it back into your portfolio. Either way, those regular payments are a win.
When choosing dividend stocks, a degree of caution is required. Some companies are struggling and offer a big dividend in the hopes of attracting investors who might otherwise stay far away. But that’s not always sustainable. Therefore, a high dividend yield can be a warning sign. However, it’s possible to find dividend stocks that offer a high dividend yield while also providing a stable investment.
These seven companies make the cut.
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