2. Protection against market downturns
When market corrections or recessions strike, stock values can plummet on a whole. That’s bad news if you rely on your portfolio as an income source or need to tap your portfolio immediately, because if you sell off investments in the midst of a downturn, you’re liable to take losses. The great thing about dividend stocks is that they tend to keep paying even when their values drop, which means if you need access to money, you can get it without having to take a hit on investments.