It’s not always easy to select good dividend-paying stocks.
Several conditions need to be met to ensure the stream of income is both attractive and resilient.
If the dividend yield is too low and is unable to beat inflation, this defeats the purpose of investing.
On the other hand, a high dividend yield may end up being a value trap as an impending dividend cut may loom large.
Companies that seem to pay out a dependable dividend may suddenly cut or eliminate them when faced with stressful economic conditions.
All in, it can be tough to zoom in on a suitable dividend-paying company that offers you stability and peace of mind.
Investors need not fret, however.
The key to locating great dividend stocks lies in choosing stocks within the right industry or sector.
Here are three categories of stocks that offer stable and consistent dividends.
