Dividends4Life: How to Invest in Dividend Stocks

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How to Invest in Dividend Stocks

Posted by D4L | Thursday, August 02, 2012 | | 0 comments »

If you have a long-term investment horizon of at least ten years, your best investment is not mutual funds, ETFs, growth stocks, bonds, or gold, but a diversified portfolio of high quality dividend stocks. Here are the steps to build your investment portfolio to achieve the best long term returns.

Understand that stock return = dividend yield + share price growth. For example, a company that pays a 5% dividend yield and appreciates by 5% every year has an annualized 10% total return. High quality is necessary to ensure that the dividend will last and will grow at a satisfactory rate.

Source: WikiHow

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