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Originally Posted by Hog's Gone Fishin
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I'm still curious about what makes dividend stocks so attractive even with a 7% dividend. The dividend stocks seem to just trade sideways, so why not put that money in growth stocks. I mean 15-20% is easy now days. I guess if you want to keep like an emergency fund then a dividend fund could replace a savings account that pays 0.5%. Still learning .
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How I see it is dividend stocks are attractive if you're at a stage where regular income is important, quarterly or monthly, with reduced risk. Retirees for example. Most of the typical income producers like REITs concern me though, because of the volatility. On the other hand your guy Chris picked At&t, which is one I've had on my watch list and agree with - it's trading at near bottom already and giving a 7% quarterly dividend. There's not much risk for dividend stocks like that. The good ones will weather market down-turns, AT&T didn't lose anything back in March. I wish Bond Funds could deliver yields like that.
By the way there is a low expense stock ETF that pays almost 5% yield, SPYD.