High-dividend stocks are ok, but don't forget diversification

Utility stocks for generations have been sources of high dividends. Since utilities collect stable cash payments from customers, and customers need power in good times and bad, utility companies can often afford to pay the biggest dividend yields of almost any industry.

And that's why, when you're buying any income-producing investment ranging from preferred stock to utilities, don't forget the important lesson of diversification. Rather than adding more money to Progress, why not spread your investment over several other utilities operating in other parts of the country? You might also consider investing in an exchange-traded fund that owns a broad basket of companies paying relatively high dividend yields.

Source: USA Today

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