Investors Like Dividend Stocks

There are two basic types of stocks that investors can choose to build their investment portfolios around. There are investors that love to buy growth stocks. These are companies that are great growers and make money hand over fist. A company like Apple is a great example of a growth stock. Investors buy these stocks hoping to catch lightning in a bottle and get rich. The other type of stocks that investors like are dividend stocks. Dividend investors love these companies because they provide a nice cash stream which helps to add money to investors bank accounts. Companies like Walmart are good dividend stocks because their earnings are very safe and secure. They also offer lots of stability in the form of great balance sheets. If earnings do dip, investors can get paid their dividends by cash from the balance sheet. That means that the cash will just keep rolling in.

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