MINNEAPOLIS (Stockpickr) -- The market continues its gyrations. Up one day, down the next. Up one week, down the next. Add in the craziness of high frequency trading and investors are right to wonder if publicly traded stocks make sense in this environment. It is a fair question, but don't give up.While it is easy to be cynical about the market there is one category of stocks that investors can indeed rely on: Income stocks. With interest rates pathetically low and the Federal Reserve signally that rates will stay low until at least 2013, dividend stocks have become extremely attractive. To the extent the market decline pushes prices even lower, yields on dividend stocks go higher. Rain or shine, companies that pay dividends do so because they have steady, reliable cash flows. In many cases dividends have increased year after year. If indeed we are heading to a double-dip recession investors in dividend stocks should be able to sleep easy or at least easier than those owning stocks losing significant value during this market correction. Nothing is risk free of course, but dividend stocks are about as good as it gets from my perspective. Sure the stock price of a dividend paying company can go down in value, but as long as the dividend is being paid consistently, who cares? Even if the market does go down further, stocks over the long haul usually recover whatever lost value it incurs.
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