Should You Only Buy Stocks That Pay Dividends. E ven with the s&p 500 down 9% year to date, the index only yields 1.4%. You’ll have to buy a dividend mutual fund directly through the mutual fund company, but you can buy dividend etfs the same way you buy stocks.
Dividend investors will tell you that you only need to simply buy shares of common stocks of quality dividend stocks that pay nice yields to begin receiving a decent stream of passive income. This means you receive a payment four times a year. That's much lower than the 4.3% average historical yield over.