Investing in dividend stocks allows investors to generate passive income without needing to sell shares, and this income can grow if dividends are reinvested.
While high-yield dividend stocks tend to underperform benchmarks like the S&P 500, they provide more cash flow and stability than growth stocks, appealing to risk-averse investors.
Extra Space Storage (NYSE:EXR) offers a 4.39% yield, operates in a recession-resistant industry, and has seen a significant increase of over 40% in shares over the past five years.
This real estate investment trust has a strong track record of net profit margins exceeding 20% and has consistently posted higher revenue despite a current stock correction.
#dividend-stocks #passive-income #investment-strategy #real-estate-investment-trusts #financial-growth
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