Savings accounts, CDs and other investments considered safe no longer offer attractive interest or dividends. This has forced conservative investors to raise their risk tolerances and look to the stock market for returns that beat the rate of inflation and offer steady income. Picking individual stocks to capture capital return is a dangerous strategy, especially for those without the knowledge or experience to manage risk.
A better strategy is to invest in blue-chip stocks that pay healthy dividends. Large companies with long histories of growth and profitability, and proven abilities to weather good markets and bad, are blue-chip stocks. For investors looking to the equity market to earn a steady income, investing in blue-chip companies that pay healthy dividends is likely a better strategy than attempting to pick growth stocks that will outpace the market.
Source: Investopedia
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Posted by D4L | Tuesday, October 30, 2012 | ArticleLinks | 0 comments »________________________________________________________________
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