Dividend Stocks Are Paying Off for Income Investors

Investors can weather the storm of a volatile market with dividend-paying stocks.

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When the stock market hits a rough patch, it can pay to hide out in dividend stocks. Those cash payouts to shareholders are akin to a vaccine or an underground war bunker. They may not shield you from all of the financial pain of a market in free fall due to soaring inflation and rising interest rates, but they will ensure that you'll survive the tumult.

"You can be down, but not out," says Jay Hatfield, manager of the InfraCap Equity Income Fund ETF (ICAP). Dividend-payers provide an income stream that allows you to cover expenses without selling stocks at depressed levels. And you can reinvest dividends in stocks you own at lower prices.

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Contributing Writer