In many ways, you could think of dividend stocks as the financial foundation of your portfolio. The reason is that they bring four unique advantages to the table for investors.
To begin with, historical data shows that dividend stocks handily outperform non-dividend-paying stocks over the long run. This suggests that if you were to buy and hang on to companies that pay a regular dividend, your chances of generating real wealth are considerably better than if you focused on a portfolio of companies that didn’t pay a dividend.