Misconceptions About Dividend Investing

On the surface, the concept of “dividend investing” seems like a very straightforward idea. Invest in companies that make distributions, reinvest those dividends regularly, and slowly accumulate wealth over the long run.In reality, however, implementing a successful dividend income strategy for your portfolio is far from an easy task.

Investors need to know what factors to consider, which ones to avoid, and how to spot stocks that look great on the surface but are in the process of crumbling. Below, we take a look at some of the common misunderstandings about dividend investing, and offer up some truth behind the misconceptions. 1. Utilities and Telecoms Are the Only Reliable Sources of Dividends, 2. High Yield Is Always a Good Thing, 3. MLPs Are Risky Dividend Sources Tied To Energy Prices, 4. Dividend Investing is Equivalent to Value Investing and 5. Dividend Stocks Are Always Safe Stocks.

Source: Dividend.com

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