Dividend Stocks Offer Stability And Growth

The S&P 500 may be up a quick 5% in the early weeks of 2012, but it's important that investors not forget about dividends. As interest rates remain at historic lows and financial uncertainty looms across the globe, it is prudent to maintain exposure to income-generating stocks -- especially while the tax laws remain favorable in this country. And believe me, dividends can grow as well. In 2011 alone, Standard and Poor's recorded $50.2 billion of dividend increases in the U.S., with actual cash payments increasing 16% year-over-year.

With solid underlying earnings and solid balance sheets, dividends will likely continue to grow in the new year. With that in mind, what do I Iook for in an attractive dividend stock? Two things: security and potential growth. Both are equally important and I consider both necessary before buying a dividend stock.

Source: The Street

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