Dividend stocks are often the foundation on which the greatest investing and retirement portfolios are built. And there's a good reason for that: They present myriad advantages over companies that don't share a percentage of their profits with shareholders.
Three big advantages of dividend stocks

• Dividend stocks are often a beacon of profitability.
• Dividend stocks can help hedge against the inevitable downward movements in the stock market.
• Dividend stocks allow shareholders to grow their wealth through a process known as compounding.