3 Dividend Stocks to Double Up On Right Now
Many people think of dividend-paying stocks as great for retirees, and that's certainly true. If you're retired with a stock portfolio worth a total of $500,000 and it has an overall dividend yield of, say, 4%, you'll be collecting around $20,000 in income annually -- without having to sell any shares! Better still, healthy and growing dividend payers tend to increase their payouts over time, so that income might even keep up with inflation.
But dividend-paying stocks are also great for people who are far from retirement. Let's say your $300,000 portfolio has an overall yield of 4% -- that's $12,000 in annual income that just shows up in your investment account. You may not need it to pay for living expenses, but you can reinvest those dividends -- using them to buy additional shares of stock. So while you might only be able to add, say, $10,000 to your investment accounts this year, your dividends will contribute $12,000. Dividends can be powerful portfolio boosters.
So here are three solid dividend payers to consider.
Source Fool.com
