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Practical Advice from

5 Versatile Dividend Stocks No Matter Your Age

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When you think of a “retirement” stock, certain things come to mind. Retirees need income, so their portfolios tend to be chock full of dividend stocks. They also tend to prefer stable, established companies over new and unproven up-and-comers. Growth is important, but safety and stability are more important. Leave the flashy growth stocks to the kids.

But while we tend to think of retiree stocks in this light, investors of all ages would be smart to take the same balanced approach. After all, value stocks have massively outperformed growth stocks over time, and dividend stocks outperform their non-dividend-paying peers … and with less volatility to boot.

The outperformance of dividend stocks is not random. Paying a dividend forces company management to be more disciplined. Every dollar paid out to investors is a dollar that isn’t retained in house, so management is forced to prioritize and, ideally, eliminate value-destroying empire building via acquisitions.

Furthermore, in investing you win by not losing. By limiting your portfolio to dividend stocks, you immediately exclude younger and unproven companies — or those most likely to spectacularly blow up.

The safest dividend is the one that was just hiked. If management was confident enough to raise the dividend, it generally means that company is bringing in ample cash for future dividends. So, by further limiting your list of dividend stocks to those with a good recent history of raising the payout, you better increase your odds for outperformance.

Here are five dividend stocks that would be every bit as appropriate for a young investor just starting to save as for a retiree living on the golf course.

Prices and data are from the original InvestorPlace story published on September 14, 2017. Click on ticker-symbol links in each slide for current prices and more.

SEE ALSO FROM KIPLINGER: 12 Dividend Aristocrat Stocks to Earn Income All Year Long

This slide show is from InvestorPlace, not the Kiplinger editorial staff.

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