Investing in dividend-paying stocks can provide investors with a number of advantages. First of all, these stocks offer investors a steady stream of income because businesses that pay dividends often do so on a regular basis. Second, because these businesses frequently have a track record of success and financial stability, they can add a sense of stability to an investment portfolio. Because businesses may raise their dividend payouts over time to keep up with rising costs, dividends can also serve as a hedge against inflation. In addition, when a company continues to pay dividends and expand its business, the share price of that company may rise over time, potentially resulting in long-term financial gains.