Dividends4Life: Stocks You Need to Beat the Market

Stocks You Need to Beat the Market

Posted by D4L | Wednesday, August 11, 2010 | | 0 comments »

Anyone buying individual stocks is doing so for one reason: We think we can beat the market. If we can't, then we should be sticking with long-term positions in mutual funds and ETFs exclusively. With that warning aside, I will be highlighting three different types of stocks (complete with examples) that you should look into if you want to beat the market. I am emphasizing these stocks in particular because I believe they offer great opportunities today.

Many investors lump dividend payers into one bucket. But there are many different flavors of dividend stocks. There are the safe dividend payers that people normally think of. These are companies that are mature but still have the ability to grow their businesses and dividends. Further down the road are the companies that have diminished growth prospects that wisely pay out large dividends to return wealth to shareholders. And then, for some more spice, there are the real estate investment trusts (REITs) and master limited partnerships (MLPs) that sport eye-popping dividend yields because they're obligated to pay most of their profits out as dividends to ensure favorable tax treatment.

Source: Motley Fool

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