“Dividend stocks are known for being safe, reliable investments. Many of them are top value companies. … Dividends that are consolation prizes to investors for a lack of growth are almost always bad ideas. In 2008, many financial stock’s dividend yields were pushed artificially high due to stock price declines. “
Can you lose money on dividend stocks?
” With dividend stocks, you can lose money in any of the following ways: Share prices can drop. This situation is possible regardless of whether the company pays dividends. Worst-case scenario is that the company goes belly up before you have the chance to sell your shares.”
How many dividend stocks should I own?
” For a dividend investor, there is no magic number of stocks you should own. However, at a minimum you should probably own at least 10 and hopefully more depending on what stage you are at in building your portfolio. The more companies that you can invest in over several decades … the better diversified you will be. “
Safe high dividend stocks
Investing in high dividend stocks, safe high dividend stocks, best long-term dividend stocks especially now with increased volatility conditions is a more conservative way to buy stocks, invest in stocks, and get a high dividend yield.
How to invest in dividend stocks is another way for effective risk diversification, buying stocks spread across various sectors and industries. The best dividend stocks to buy and hold are those with a proven track record of consistent dividends, growth, and fundamentals that support the valuation and future growth of dividends. High dividend blue-chip stocks can be considered safer than small-cap high dividend stocks.