Dividend-paying stocks offer a powerful combination of current income and growth potential that many investors find extremely attractive right now. But as you look for stocks that pay the top dividends, you have to stay aware of one pitfall that can easily put your entire life savings at risk if you're not careful. Often, investors who gravitate to dividend stocks are on the more conservative side of the investing spectrum. Unlike bold growth investors who prefer companies that reinvest every spare penny back into their businesses to grow as quickly as possible, dividend-seeking investors look at the tangible return of cash to shareholders on a regular basis as a safety net against rash corporate action or even outright fraud. In that sense, some associate dividend stocks with safety.
As you look for the best dividend-paying stocks, it's important to keep your overall portfolio diversified. By being aware of the dangers of concentrated risk that the most popular and highest-yielding dividend stocks pose to your investments, you'll be able to mix and match from a wide array of different industries and sectors to keep your portfolio as safe as you can.
Source: Motley Fool
Related Articles:
- Building Yield: 15 Consumer Goods Dividend Stocks
- 10 Financial Services Dividend Stocks To Boost Your Yield
- 12 Industrial Strength Dividend Stocks
- 13 Dividend Stocks Headed In The Right Direction
- These 11 Dividend Stocks Could Make You Wealthy
Don't put all your dividend stocks in one basket
Posted by D4L | Wednesday, April 27, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.