Many retired investors hope that a dividend stock portfolio will provide a steady stream of income while growing the portfolio. To give you an idea of how many companies pay a dividend, S&P Global Market Intelligence reported that in early 2026, 411 companies (over 80%) in the S&P 500 pay dividends. If you are investing broadly and diversifying in the stock market, you will have quite a lot of exposure to dividend stocks without trying. There is evidence that certain types of dividend stocks have outperformed the S&P 500 in recent years. Unlike the dividend stock owner, you will choose how much income to take and when to take it.