Dividends have long been a great place for investors to find supplemental sources of income. In reality, dividends were the original reason why investors bought stocks in the first place.
Stock ownership really meant ownership in a company and dividends represented a share of those profits. But dividends can be much more than just a paycheck in retirement or supplemental working income.
In fact, dividends can be a huge safety net for volatile times.
There’s plenty of research that shows that dividend-paying equities outperform those that don’t share the love during rough economic and market patches. Given the recent turbulence in the market and rising uncertainty, dividends could be the solace that investors are looking for.