Stocks That Will Give You a Raise

Lots of folks are talking about dividend stocks right now, and with good reason. When stocks' yields outpace those of bonds, as they do now, that's a classic buy signal. Doubly so when the market appears volatile: A stock that pays a dividend that's both high and sustainable will reward you even when the market is going south. At moments when the market seems like it could take a big swing down, loading up on dividend stocks is an appealing move.

n fact, if you choose to reinvest that dividend -- and unless you're retired, it's a good idea to do so -- you get a dollar-cost averaging effect when the stock's price is down. That means more shares for you, and more money in your portfolio when the price swings back the other way. Think that might make it easier to put up with Mr. Market's mood swings? Any company can hike dividends once or twice every now and then. But some companies have a long-standing tradition of raising their dividends every year, through good times and bad. These firms make that dividend increase a key part of their overall financial plans.

Source: Motley Fool

Related Articles:

• Why We Are Dividend Growth Investors
• High-Yield Dividend Stocks: A Safer Approach
• 3 Simple Steps For A Successful Retirement
• Dividend Payout vs. Free Cash Flow Payout
• Increasing Dividend Yield Part II: REITs