For many investors they rely on dividends from stocks for income. Especially when you are retired or near retired. The challenge is to find a good portfolio of dividend stocks, then to keep that portfolio fresh and profitable. This means you need to know when dividends are at risk and then consider selling that stock. Or you want to know which are the best stocks today or the latest top dividend stocks are so you can buy more.. Keep in mind that some Exchange Traded Funds (ETFs) also pay dividends.
What is dividend investing?
Dividend investing is a trading strategy of investing in stocks or ETFs that pay dividends (cash in your pocket) so you can receive a steady income from your hard-earn edinvestments. As opposed to high risk trading. Dividend income is on top of any growth your portfolio experiences as the stock or ETF gains value. Experienced and profitable dividend investors prefer to invest a major percentage of their portfolio in stocks that pay large dividends so they can earn money. In addition to successful dividends, investors look for dividend safety – or how likely it is that a company will continue to pay dividends at the same or higher percentage rate. For the most part, companies that pay 60% or less of earnings as dividends are safer bets because they can be counted on to be predictable and stable. Read more about dividend investing here: Trading in Retirement – Dividend Investing
Sometimes it is not safe to just pick the stocks with the highest dividends. That may seem strange, but there might often be reasons why high-dividend stocks pay out so much. Problems with the underlying business. Or maybe the dividend yield ratio is significant higher, and this might threaten future growth. This article provided by: Investing for Retirement