You Don't Have to Pick a Winner in Dividend Stocks. Here's Why.
Especially when the market is rough, dividends can play an incredibly powerful role in delivering investing returns. After all, cash stays around as cash, and while it may lose purchasing power to inflation over time, cash won't disappear overnight just because the market is in a bad mood.
Even better, once paid, the cash from those dividends is versatile. You can use it to pay your bills, to buy more shares of stock, or keep it around until the market makes you an offer you truly can't refuse.
Yet, if there's a problem with dividends, it's that they're never guaranteed payments. If a company gets into trouble, its dividend may very well be one of the few substantial costs it can cut without causing itself massive operational challenges.
Source Fool.com
