Steady returns with dividends

Bankrate Audio » Steady Returns With Dividends

Listen to audio

Editor's note: This is a transcript of the audio file.

When the markets are volatile investors can still receive regular income from their stock investments via dividends. I'm Kristin Arnold with your Personal Finance Minute.

So, what exactly are dividends and what are the benefits of dividend paying stocks for investors? Greg McBride, Senior Financial Analyst, with explains.

"Dividends are regular cash payments made to the shareholder of a company. Dividends can really add up, especially when reinvested. Companies that pay dividends also tend to produce steadier performance in volatile markets."

Sounds like dividends are a good option for investors – what are some things investor should know before going in?

"Dividends aren't fixed; they come from profits so a company downturn could jeopardize the dividend. So you want to make sure that you're diversifying your money among different companies that have sustainable profits."

Investors can add dividend-payers to their portfolios by purchasing individual stocks, mutual funds, or exchange-traded funds.

For more information on dividends, just visit I'm Kristin Arnold.


Show Bankrate's community sharing policy
          Connect with us

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

Can heirs cash an old trust?

Dear Dr. Don, The youngest of 6 children, I am 48 years old. My father joined the Navy at 22. In Italy, he met his bride and my mother, and returned to the U.S. to raise our family. In 1959, he bought a trust certificate... Read more



Dr Don Taylor

Alts in a time of low interest rates

Alternative investments are assets classes other than stocks, bonds and cash.  ... Read more

Partner Center

Connect with us