Worried About Dividend Cuts? Buy These 3 Dividend Stocks and Sleep Well At Night
There's no better feeling for a dividend investor than peace of mind.
Overview
When you expect your stocks to pay you for holding them, dividend cuts are your worst nightmare. Not only does a dividend cut mean you're losing that passive income, but the stock itself often tanks once a company announces the cut.
Fortunately, investors can avoid picking lousy dividend stocks by focusing on certain traits. An established track record of paying dividends and raising them helps, but it goes beyond that. Companies with safe dividends often operate recession-resistant business models, have healthy financials, and maintain a solid growth trajectory, so their dividends can continue to grow alongside profits.
Details
Realty Income (NYSE: O), Altria Group (NYSE: MO), and PepsiCo (NASDAQ: PEP) are top-notch dividend stocks that check all these boxes. Buy and hold them to get paid while sleeping well at night.
Source
Originally published at www.fool.com.