I’ve spent dozens of pages on this website talking about why dividend investing is one of the best ways to build a passive income, and one of the best ways to invest in stocks. If you want a fairly stable retirement income while minimizing speculation, dividend stocks are your best bet.
This isn’t to say there isn’t risk — there’s always risk no matter what you do financially. A recession, economic collapse, fraud, political unrest — any of these things could lead to your investment being dampened or even destroyed. But overall, the risk for dividend stocks are substantially below most other investments offered by Wall Street.
I’ve broken the stock analysis into industries and sectors, as should be apparent with the following list:
- General Industries. Research industries, especially high-yield dividend industries. Don’t forget that high-yield dividends aren’t necessarily a good thing. Don’t forget to brush up on why companies pay dividend in the first place. Don’t forget about privately-held companies.
- Energy Companies. Energy will always be a high-dividend industry because it’s so profitable, necessary, and lucrative. Check out the best oil dividend stocks, natural gas stocks, and others. I’ll add more as the website is updated.
- Telecom Companies. The list here is pretty short, but we’ll be adding more in the future. Check out the best telecom dividend stocks.
- Gold Companies. Picking precious metals companies are risky, but they can certainly pay off with a mixture of low-but-steady dividends and growth. Read the article on gold stocks here, and the gold stocks guide at my gold website.
If you’re looking for more about dividend investing strategy, then check out the basic dividend investing tutorial as well as the 3-minute case for dividend investing.
When it comes to picking dividend stocks, one should look for cheap companies that have high earnings per share, as well as a high dividend yield, and a stable market with room to grow. While this sounds oversimplified, that’s really what dividend stock picking is all about.
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Dividend investing is the only way I invest, and here's why: dividend stocks create a secure, passive income, and are less risky than non-dividend investing.
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