Although the S&P 500 has returned almost 100% since March 9, 2009, it seems the general public remains fiercely risk averse. But there is risk in doing nothing. Investable assets sitting in cash will erode your purchasing power as the economy slowly grinds toward improvement because prices of most goods and services will rise with economic activity. Stock ownership helps combat inflation, and most responsible investors should have some exposure to stocks now.

For those investors that can get out of their bunkers to do some stock picking, you might want to go for some high-quality, low-priced dividend stocks that will pay you to own them. The great thing about dividend stocks is that, while you are patiently waiting for the markets to improve, the stocks pay attractive yields along the way. You can almost think of the yield as providing a limited cushion to your downside of holding the stock.

Source: Forbes

Related Articles:

• Five Stocks With A Low Debt To Total Capital
• Are REITs and Utilities Good Dividend Investments?
• The 2010 Elite Dividend Stocks List
• A Winning Investment Strategy
• Retirement Planning With A Defined-Benefit Pension