Well-established, dividend-paying companies have traditionally been referred to as widow-and-orphan stocks, because they provided their stockholders with a reliable dividend stream that could be counted on as a steady income. But while they may be given such a label, the fact of the matter is that many types of investors can probably improve their portfolios by including companies that make consistent dividend payments to shareholders.
While dividends aren't the whole story when considering whether to buy a stock, a relatively high current dividend yield and solid history of consistent dividend payouts certainly increases a stock's attractiveness. Provided the dividend amounts remain stable and are not reduced in the future, they can be a rare source of support for the individual investor in an otherwise turbulent market.
Source: Investopedia
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