Quality Counts When Selecting Dividend Stocks

THERE has been a big buzz around dividend stocks since the last global financial meltdown as investors and funds start to see the importance of establishing a regular income source, especially when the going gets tough. Dividend stocks also serve as an avenue to generate income to fund retirement especially for investors with weaker saving habits. However, are dividend stocks really such a god-send, or have they been over-hyped by financial media?

The key point to drive home is that whether one is planning for his retirement or is merely seeking extra side income, quality is still of paramount importance. A high yielding stock does not always mean it is a good stock. Though a stock with sound fundamentals and with attractive yields to boot would be a wise investment option.

Source: Business Times

Related Articles:
- Increasing Dividend Yield Part IV: Bonds
- Increasing Dividend Yield Part III: Preferred Stock
- Increasing Dividend Yield Part II: REITs
- 11 Dividend Stocks Providing Positive Feedback
- 38 Dividend Securities For A Well-Rounded Asset Allocation