Are dividend stocks worth it?
Dependent on your strategy.
I have a sizable portion of my portfolio in blue-chip stocks with a nice dividend yield (in my mind ~3.0% or more) and decent capital appreciation, and most, if not all of those, dividends have been reinvested back into the names since I was a child so the compounding effect has been great. Will make for a nice income stream whenever I choose to receive the payments in cash.
Also, have a portion of my portfolio in momentum plays where I'm looking solely for sizable capital appreciation.
With that said be weary of stocks with gaudy dividend yields. Do your research and try to get a view of the stability of the dividend (i.e. has there been a pattern of cuts or suspensions? do the growth prospects suggest that the company will be able to afford the dividends in the future? is the high yield a function of a rapidly deteriorating share price?)
For example, mortgage reits tends to have a high dividend yield of say 10+%, but the shares have been getting hammered due to the prospects of rising interest rates, so while you can offset your losses with the high dividend payout, your breakeven gets worse as the share price slides rapidly
