"Dividend funds hope to offer dividend income. AdvertisementDue to their slower growth, dividend-paying stocks are often more reliable than growth stocks, making them a good addition to a young person's investment portfolio for diversification. For example, adding a few dividend-paying stocks to a portfolio of volatile growth stocks can offer diversification. Particularly for young people just getting started with investing, dividend stocks are a good way to learn, says Michael Dinich, a financial advisor. Dividend-paying stocks are also safe for the most part in comparison to growth stocks.

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Persons: —, Casey Hayden, Alissa Musto, Julie George, George, Michael Dinich, Hayden Organizations: Service