Dividend Stocks
- 26 January 2015
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Dividend stocks are stocks of companies which have a proven track record of paying out a portion of their earnings to the stock holder in the form of dividends in a long term basis.
If you have a long-term investment horizon of at least ten years, one of the best investment choices is not only mutual funds, ETF’s, growth stocks, bonds or precious metals, but a diversified portfolio of high quality dividend stocks.
In the next rows there are some useful tips in order to build an investment portfolio to achieve the best long term returns:
1. Stock Returns = Dividend Yield + Price Growth. Be careful of overbought stock markets and make dividend stock placements at the dips
2. Get as much of information that you can via Internet, financial news and so on and make a list of high value companies with a good reputation that have a proven long-term track of dividend payments or receive investment tips by professionals
3. Insist on fundamentals. Financial strength is the best indicator of high quality
4. Look for a decade or over of consecutive dividend payments & high dividend yields of the company that you are interested to invest
5. If you are a really long-term investor, re-invest your dividend payments. This action works like a multiplier for your investment portfolio
6. Diversify your dividend stocks portfolio. Never “get married” with a single stock
Surely, the tips that are mentioned above are not the only to get the right investment decision but they give a good perspective for wealth management and the appropriate motivation to start up a remarkable portfolio of dividend stocks.
Next, there is an indicative table with 20 outstanding dividend stocks in USA’s stock exchanges:
