Time To Hunt For Dividend Stocks

The beach is sparkling in the sun, the water looks inviting, and I’m sitting in front of a computer screen because Mr. Market is once again sliding into depression. But a little panic is invigorating because there are bargains to be had, and I’m on the hunt for a few good dividend stocks. Dividend payers can be attractive in downturns because they tend to be large, mature firms with fairly stable growth prospects that are unlikely to get washed away when the tide goes out.

Don’t get me wrong: They aren’t risk-free, and they may get banged up a bit in a real collapse. But you can only buy them at reasonable prices when the outlook is grim. Naturally enough, not every dividend stock will do. Experienced investors know that stocks sporting extraordinarily high yields deserve extra scrutiny because they can be risky.

Source: Globe and Mail

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