10 Things Every Dividend Investor Should Know

6. Dividend Stocks Are Less Sensitive to Changes in Business Cycle:

Companies that pay regular dividends to shareholders have more stable business models, strong cash flow generation, and mature operations, which help them stay afloat during economic downturns. Moreover, dividend-paying sectors, such as utilities, consumer staples, and healthcare tend to be less cyclical and more resilient during economic clampdowns. However, dividend stocks can also be volatile, which mainly depends on the market conditions and industry dynamics.