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4 Reasons You Need Dividend Stocks in Your Portfolio


Diversification is one of the key pillars in investing. Not only should you have diversification in industries or company size, but part of having a well-diversified portfolio also includes having stocks that pay out dividends. Younger companies don't usually pay out dividends because they need to reinvest the money back into the company to continue growing, but older, well-established companies typically pay out dividends to reward shareholders for holding onto the stock.

Here are four reasons why you need dividend stocks in your portfolio.

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Source Fool.com


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