Dividend Advantage #4: Earn in Flat Markets

As the owner of a good dividend-paying stock, you really don't need the stock to go up at all to profit. Even if the stock stands still, the steady flow of dividends can create an attractive return — especially if the yield is over 5%.

However, beware of exceptionally high-yielding dividend stocks — it may mean a dividend cut is on its way. When that happens, the yield is reduced, which can drastically change the calculations.

Be sure to read Protect Your Stock Investments and discover two more red flags you should never miss in order to keep your money safe.

Next: Dividend Advantage #5: Outperform the Market