Are Dividend Stocks Right for You?
The market sell-off has pushed the dividend yield of the S&P 500 from 1.2% at the start of the year to 1.7%. What's more, many individual stocks now yield their highest levels in several years. Investing in stocks that pay consistent and growing dividends is an excellent way to supplement income in retirement or boost your passive income stream. As stock prices fall and dividends stay constant, the yield goes up.
Making passive income without the need to sell stock is alluring. And it could be the right strategy for you. However, there are drawbacks to dividend stocks as well. Let's go through the pros and cons to help you align your investment planning with your risk tolerance and financial goals.
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Source Fool.com
