What are dividend growth stocks and how do they work?
Dividend growth stocks are shares in companies that consistently increase their dividend payouts over time. They provide income and potential capital appreciation.
Why should I consider investing in them?
Investing in dividend growth stocks can provide a reliable income stream, help combat inflation, and offer potential for long-term capital gains.
Can you give me some examples of dividend growth stocks?
Sure! Some popular examples include Johnson & Johnson, Procter & Gamble, and Coca-Cola, all known for their strong dividend histories.
What are the risks associated with investing in these stocks?
Risks include market volatility, potential dividend cuts during economic downturns, and the need for thorough research to identify sustainable companies.
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