Dividend stocks are back in favour on Wall Street as many investors seek to limit their downside with guaranteed payouts. Banking the dividends from your portfolio can help replace some of the value lost when shares slide - or if the payout is good enough and the stock is stable enough, actually grow your nest egg even while other investors are in the red.
When the stock market is volatile, it usually doesn't matter what the company is. You will end up with lost value. Dividend stocks are no different. The share price is just as likely to drop in a down market as all the other stocks heading down. The dividend advantage is seen as you continue receiving a payment for your shares. If a company has solid fundamentals, it is likely to continue paying a dividend. This means you still get some benefit - even in a volatile market.
Source: Jamaica-Gleaner
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