5 Dividend Stocks To BUY

Reasons for buying dividend stocks

• Dividends often provide investors with the opportunity to take advantage of the power of compounding. Compounding happens when we generate earnings and reinvest the earnings, eventually generating earnings from the earnings. Dividend compounding occurs when dividends are reinvested to purchase additional shares of stock, thereby resulting in greater dividends. 
• A company that pays consistent, rising dividends is likely a financially healthyfirm that generates consistent cash flow (this cash, after all, is where the dividends come from). These companies are often stable, and their stock prices tend to be less volatile than the market in general. As such, they may be lower risk than companies that do not pay dividends and that have more volatile price movements. 
• Dividends are more than just income, each payment sends a signal about the current performance and future potential of the business. Companies with meaningful, reliable and sustainable dividend payments are simply better investments than companies that pay little or nothing out to shareholders.
• Many people invest in dividend-paying stocks to take advantage of the steady payments and the opportunity to reinvest the dividends to purchase additional shares of stock. Since many dividend-paying stocks represent companies that are considered financially stable and mature, the stock prices of these companies may steadily increase over time while shareholders enjoy periodic dividend payments.