Paul Sullivan writes in his Wealth Matters column this week about a type of stock that had fallen into disfavor over the last couple of decades because it had none of the go-go appeal of a technology start-up — the dividend-paying kind. Paul speaks to several financial advisers who say they are now promoting dividend-paying stocks to people who still have money in cash or low-yielding bonds.
Dividend-paying stocks offer several advantages, their proponents say, among them their long-term stability and their role as a hedge against inflation. But there are risks as well. If the economy stumbles, companies might not have the cash to pay dividends. And while dividends are now taxed at the capital gains rate, that could change when the current rules expire next year.
Have you sought out dividend-paying stocks? Or do they still remind you of something only your grandparents would invest in? Tell us your stories below.
Article source: http://feeds.nytimes.com/click.phdo?i=5b6543190cf710febb1e951a5461c021
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