It's a Mistake to Ignore the Growth Potential of These 3 Dividend Stocks
Many dividend stocks have fallen out of favor over the past year as rising interest rates made certificates of deposit, bonds, and T-bills more attractive options for income investors. But those fixed-income investments will still underperform most blue chip dividend stocks over the long term for two reasons: Stocks generally appreciate in value, and their gains can be compounded over time through dividend reinvestment plans (DRIPs).
Therefore, investors should still own a few reliable dividend stocks even if interest rates remain high. I believe three stocks -- Coca-Cola (NYSE: KO), Johnson & Johnson (NYSE: JNJ), and IBM (NYSE: IBM) -- fit that description.
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Source Fool.com
