One of the casualties of the credit crisis has been the lucrative dividend payments that dozens of companies have either cut or suspended. While those firms desperately needed that cash, it meant billions of dollars didn't wind up in the wallets of shareholders.
We have always championed the benefits of owning stocks that pay a dividend. In tough economic times these payments can provide valuable income to retirees and help younger investors get a few extra percentage points of return that can mean the difference between lagging and beating the broad market. Studies have shown that dividend-paying stocks are the better investment over time than those that don't make these payments.
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