One of the most prevalent myths about dividend stocks is that they are mostly for retired investors. The slow growing, unexciting businesses which tend to grow at predictable rates, are not seen to be sexy enough for young investors. This misconception can cost you millions of dollars in missed opportunities.
Dividend growth stocks are the perfect investment vehicles for investors in all ages. The fact that these companies are established and mature should not steer you away from investing in them. The reasonable growth means that these companies are trading at more attractive valuations in comparison with high-flyer technology companies such as Netflix (NFLX) or Blackberry (BBRY). This means that share prices will not decrease substantially when the economy experiences its next recession. In addition, the strong amounts of cash flow that these companies consistently generate, lead to stable and rising dividend checks, coupled with good market like total returns.