Investing in dividend stocks can provide passive income without selling shares, and you can even get tax-favored treatment for your dividends in certain accounts. However, investors must consider several key aspects when investing dividend.
Evaluate your risk tolerance, and focus less on yield and more on companies’ ability to grow their dividend payments over time. Also, avoid dividend traps that lure investors with enticing yields that are unsustainable or likely to stop paying dividends altogether.
