3 Safe Dividend Stocks That You Can Buy and Forget About
Dividends represent a great return on your investment as they offer a tangible return that is unrelated to the stock's price. With a portfolio of dividend stocks, you can build up a steady and consistent stream of passive income to supplement your earned income. However, it is not enough to just select companies that pay out a dividend. You need to ensure that the business can be relied on to keep paying out dividends and for these dividends to steadily increase to beat inflation.
What investors should be looking for are "safe" dividend stocks -- companies that have a stellar track record of increasing dividends, own a portfolio of solid brands and products, and generate copious amounts of free cash flow. Granted, these businesses may still be affected by the ups and downs of the economic cycle, making their share prices unavoidably volatile. But if you are an income investor who is purely focused on dividends, then these three storied names are as dependable as they come.
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Source Fool.com
