Whether it’s a source of income, long-term growth of your portfolio, or building up a future source of cash flows, dividend stocks are an excellent way to build wealth. Moreover, sometimes the market puts too much stock in the downside risks a company faces, creating an opportunity for investors to pay bargain prices and profit from both the dividend yield and from the market’s eventual realization that it was underpricing a great business.
Case in point: These 10 dividend stocks aren’t perfect, and Mr. Market has punished them recently. Yet their cash flows and business prospects are more than sufficient to keep the dividend checks coming (and in some cases growing), something sellers seem to have ignored on their way out the door. For savvy investors willing to take a stake amidst some turmoil, the long-term rewards should more than pay off. Collecting a big dividend every quarter can make the ride a little more comfortable, too.
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