Dividends play an important role in many portfolios. They’re a sign that corporate management is committed to shareholders, and companies tend to be reluctant to cut them. If you're nearing retirement, you may look to regular dividend payments to help supply you with income for living expenses. And since stocks with high dividend yields tend to be less volatile than non-dividend-paying names, they can provide good balance for anyone's portfolio.
If you own stocks that pay dividends, monitor that payout. You want to see a dividend that's stable, or growing. It's virtually always a bad sign when a company cuts or even eliminates its dividend.
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