Regular income can pay dividends

Description

Abstract: While bonds are favored by many investors in need of income, dividend-paying stocks are often overlooked. Although the stock market as a whole frequently offers a relatively modest dividend yield, certain types of stock provide yields that are more competitive with those of bonds. Dividend-paying stocks offer the possibility of double-barreled benefits: 1) the dividends themselves can increase, and 2) the stock price might appreciate as well. A sidebar to this article looks at an example of 10-year dividend growth.