They may be boring, for retirees and pre-retirees alike. The fact of the matter is, however, that a healthy dose of dividend stocks is what most investors need in their portfolios...even if they don't need income right now. Here are three specific reasons why you may want to make this strategic shift sooner rather than later, even if retirement is years down the road.
1. You need dependable stocks - Even removing dividend payments from the equation, stocks that dish out regular dividends are historically less volatile (and therefore more dependable) than most growth-oriented stocks.
2. You need consistent, meaningfully rising income over time - Don't be too quick to shun a dividend payer with a relatively low yield in favor of a sexier growth stock, assuming the latter will dish out bigger rewards.
3. You need flexibility - Finally, a key reason to own dividend names, whether you're building your nest egg or now living off it, is that you can always change your mind about what to do with those payments.
Source: The Roanoke Times
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