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3 Reasons Why Dividend Stocks Can Be Your Best Friend During a Bear Market


On the surface, a dividend is merely a source of income that investors receive as an incentive for holding a stock. But dividends have a lot more meaning than you may realize.

There's a reason why many dividend-paying value stocks are outperforming growth stocks this year. This isn't to say you should flip-flop out of growth stocks and into dividend stocks. But it's worth understanding the benefits that dividend stocks can provide -- particularly in a bear market. Here are three traits of dividend stocks that may surprise you and help you understand the advantages of adding quality dividend stocks to a diversified portfolio and holding them over the long term.

Image source: Getty Images.

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Source Fool.com

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