As the global economy continues to grapple with the COVID-19 pandemic, many companies have reduced, or even suspended, their dividends due to the ongoing uncertainty brought forth by the pandemic. This makes it difficult for one to decide whether dividend investing is beneficial in this uncertain environment.
While this macro backdrop may have investors questioning whether it is beneficial to focus on dividend investing, you might not want to completely write off the idea of allocating a portion of your portfolio to dividend-paying stocks for extra income. We believe this to be so, because given the historical growth of dividend payments, combined with the current low-rate environment, dividend-paying stocks are well positioned to be a solid component to your portfolio returns.
Here’s why we believe including dividend-paying stocks as part of your investment strategy will give your portfolio a nice income boost: