Generally, when people think of investing for income, they think about bonds, not stocks. While bonds and bond-like instruments are certainly an important part of investing for
income, there is also a way for those with the right risk tolerance to enjoy the benefits of earning a steady income through stock dividends.

Stocks are generally considered riskier than bonds because they can drop in value, and dividends can be cut or reduced. However, a dividend-paying value stock strategy can help mitigate stock market risk. One reason is that you are buying undervalued stocks, which means they should have somewhat less downside risk than an overvalued stock. Another reason is that your dividend payment is a “bird in the hand.”