Dividend-paying growth stocks are on solid footing and could outperform the rest of the market this year, since these stocks generally have underlying businesses that are solidly profitable, or at least profitable enough to pay regular dividends.
Since investors are still quite fearful and the broader market outlook is murky, these types of stocks could be a good hedge as both aggressive and defensive investments. If the market performs well, the growth could carry them higher, whereas the dividends could hold them together if the broader market falters. Historically, dividend-paying growth stocks have also outperformed their peers in the long run.
This post originally appeared at 24/7 Wall St.