When considering dividend stocks, most investors search for established and stable companies likely to trade away some of their growth opportunity in favor of a steady schedule of payouts to investors. This has long been a tried-and-true approach for investors looking to buy dividend-paying companies and hold them for the long term, and its appeal as a risk-mitigating strategy is clear in times of market turmoil.
However, volatility in the market can also mean price swings that allow more aggressive traders to capitalize on movement. Another approach to dividend stock investing might take on a higher degree of risk by seeking attractive companies for their potential to provide passive income and for their growth potential.
