3 Reasons to Avoid Dividend-Paying Stocks
Amid a declining stock market and talk of a potential recession in 2023, investors' attention has shifted to prioritizing safety and maximizing cash flow. Dividend-paying stocks can act as reliable passive income generators but are by no means perfect investments; it's especially important to understand what you sign up for when you buy a portfolio of dividend-heavy shares.
Let's review three downsides to your everyday dividend payers.
Famous growth stocks like Meta Platforms, Amazon, and Netflix have soared over the past decade but pay no dividend whatsoever. Dividend-paying stocks often happen to be more established value stocks, or companies that trade at discounts relative to their underlying fundamentals.
Source Fool.com
