Many investors buy dividend stocks for passive income as one of their goals. It’s important to be aware that not all stocks that pay a dividend are good for passive income. Here are a few dividend stocks that require more attention from investors.
Energy stocks
Specifically, I’m referring to energy stocks whose profitability are primarily based on the underlying commodity prices that are volatile. For example, oil and gas prices are based on the supply and demand dynamics. When energy supply is low or energy demand rises, energy prices go up.
Personally, I find it impossible to predict energy prices. Therefore, it’s also impossible to predict the profitability of energy stocks and which direction their stocks may go.
Read More