The holidays are great for the food, friends, and family. But the true gift that keeps on giving is a top-shelf dividend stock.
Historically, dividend stocks have a knack for running circles around their non-dividend-paying peers. That’s not really a big surprise considering that dividend stocks are often profitable and have time-tested business models. This makes them sort of a beacon for income-seeking investors.
Furthermore, income stocks provide payouts that can help calm the nerves of skittish investors by hedging against inevitable stock market corrections.
And, best of all, a recurring dividend can be reinvested back into more shares of stock via a dividend reinvestment plan. Drips are a commonly used strategy by money managers to compound the wealth of their clients.
If you’re truly in the season of giving and receiving, consider these three high-yield dividend stocks as companies you should own.