Dividend-paying stocks are being seen in a brighter light. U.S. companies are generally in much better financial shape due to sharp spending cuts in the recession and improving sales as the economy has recovered -- and management increasingly is choosing to share the wealth.

Stock dividends in fact have become attractive bond alternatives, with their predictable and often higher income stream, plus the potential for price appreciation. But stocks typically are riskier than bonds and smart dividend investors know there's more to this strategy than simply buying the highest-yielding names -- tempting as that may be in today's low-yield environment.

Source: MarketWatch.com


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