Dividend stocks are a popular choice for risk-averse and long-term income investors. Those with more aggressive risk profiles tend to shy away from dividend stocks because they usually have limited capital growth. There is a bit of truth in that, but like anything, it involves a bit of a deeper dive.
Yes, dividend stocks tend to be slow-moving, but that’s because the companies are usually large, mature businesses with stable profitability that, more often than not, they use to increase shareholder value rather than aggressively investing for further growth.
