Don't Be Fooled by Glittering High Dividend Yields
Dividends can play an important role in any investor's portfolio. They shouldn't represent all your investments, but investing in dividend-paying stocks can create a great source of income down the road. For older companies whose stock price might not have room for hypergrowth, dividends provide a way to incentivize and reward investors. And when you look at many investors' total returns, a large portion of that comes from dividends.
As you're investing in dividend-paying stocks, be sure to dig a little deeper into the companies to make sure you're making the right choice and not being fooled by what's on the surface. When it comes to dividends, all that glitters ain't gold.
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Source Fool.com
