The case for dividends is strong. What do investors want most but can’t get easily? Yield and income. So dividend-paying stocks deserve a prominent place in your portfolio, especially shares of companies that are flush with cash, do business around the world, and can weather a stretch of low inflation or even deflation.

“Ignore dividends at your peril,” said John Buckingham, editor of The Prudent Speculator newsletter. “Over time, dividend-paying stocks have tended to be a little less volatile than non-dividend payers.” But not just any dividend stocks. Steer clear of stocks that have high yields for the wrong reasons.

Source: Market Watch

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