Analysts Urge Caution With Dividend Stocks

Disappointing returns from certificate of deposit and money markets accounts are prompting many investors to turn to stocks that pay dividends for income. Analysts say dividend stocks' strong performance should continue in the new year but urge caution on betting too heavily on them.

Dividend stocks were once considered best suited for investors who wanted to avoid market volatility. Investors received regular dividend checks but didn't reap the rewards of significant stock appreciation. But low interest rates have helped push down yields on CDs and money market accounts below inflation, leaving many investors to turn to dividend stocks that can provide both income and potential for stock appreciation.

Source: STL Today

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