This post was written by Wall Street Survivor on November 9, 2016, for Sure Dividend
Investing in dividend stocks is one of the most popular strategies used by investors to save for retirement. Dividend stocks provide investors with a continuous stream of income while at the same time retaining the potential for capital gains on the amount invested.
This is pretty similar to bonds, although with bonds, you are guaranteed to receive your principal at the end of the period barring instances of default.
Even though government bonds were in the past considered safer, the picture appears to be changing, especially given the current low return levels. As a result, investors continue to pursue alternative investment vehicles such as dividend stocks.
Dividend-paying stocks are constantly sought due to their ability to offer a higher yield capacity. But whether you are investing in bonds or dividend stocks, the risk factors…