The Best Dividend Investment
When it comes to dividend investments, please stop reading the dumb articles telling you to buy these 2 dividend stocks. Hang on and I will list the only two I will ever buy for actual dividend income. These people do not seem to really care what you buy but are trying to meet their article quotas. The reason I am even authoring this article is because dividend Investing is quite simple. Every week I see articles about the best dividend stocks to buy now to add massive passive income to your portfolio. Then they list either the same two stocks or REITS every time. If you are planning on retirement or adjusting your 401K for income you may want to load up with stocks that pay a dividend. Dividend income is a wonderful thing to have, and if you have of it to retire that would be a simple retirement. I prefer growth over dividends, but I do like owning dividend paying assets. Honestly one reason I like buying investments that pay dividends is because I try and develop a mind frame of only buying assets that pay you.
If you are investing with small amounts of money growth mutual funds or ETFs are idea, but they can move hard both ways. If you want to manage your portfolio and buy individual stocks that will pay dividends look at a list of the Top High Cap 1000 and when you see a good company oversold and pays a good dividend add it to your portfolio, after that add to your position when it pulls back. This will give you a good company that pays dividends. The dividends may not be the highest, but you will also have some growth involved. Now I do not like buying individual stocks, it is just too risky unless you have a ton of cash flow. ETFs are my favorite and if you look at my holy grail trading strategy you will see that is all I trade as well. Swing trading leveraged ETFs can be very profitable but also come with substantial risk, just less risk than trading individual stocks but with a possible greater return. If you are new to the market start investing first and get a grip on your portfolio and finances, read, and study and keep it simple.
I like to keep things simple so when I invest for dividend income, I am buying one or two ETFs DIV, or SPYD. Both ETFs are well diversified within healthcare, financials, Real Estate, Energy, Consumer staples, industrial, and material sectors. This by far beats holding one Real Estate Investment trust when the housing market goes down, or individual stocks in certain sectors. Both pay around 5.5% yield, and you will need around 1 million dollars invested to live off 50K a year in dividend income. So, if you did invest in one of those riskier REITs or high yielding stocks 1 million in something that pays 8% yield a year will give you 80k to live from. The problem for me it is riskier. One goal in getting wealthy is protecting your money, meaning do not risk a big drop in your overall NetWorth for a higher dividend.
Avoid all the dumb dividend articles and find you an ETF right to build your dividend income. Only two reasons to invest in dividends, to live off the income, or to keep the mentality of only buying assets that pay you. Then keep it safe with either DIV, or SPYD.