With the stock market's strong rally in the first half of 2023, it's easy for investors to forget that dividend stocks exist. After all, what good is a 3%, or even 5%, dividend yield when the stock market is up by double-digit percentages in just six months? 

But looking at investing through this lens misses the point. Good dividend stocks provide passive income no matter what the market is doing. This predictability makes dividend stocks a great way to supplement income in retirement, produce stable returns, or simply devote a portion of your portfolio to something with lower risk, but also lower potential reward.

How much you personally want to allocate to dividend stocks depends on your age, risk tolerance, and interests. But chances are good that having some portion of your portfolio in dividend stocks is a wise move. Three Motley Fool contributors were asked to offer details on why Stanley Black Decker (NYSE: SWK), Union Pacific (NYSE: UNP), and (NYSE: WSO) could be great dividend stocks to add to a diversified portfolio in July. Here's what they had to report.

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Source Fool.com