Keys to Successful Dividend Investing

In 2008 and 2009, the dividend landscape was turned upside-down. During the fourth quarter of 2008 alone, 288 companies cut payouts. Not to be outdone, in 2009, according to Standard & Poor's, another 804 dividend payments were cut by public companies -- costing investors another $58 billion. Nevertheless, amid all the dividend cuts and suspensions of the past two years, we were reminded of five key lessons that we can use to our advantage going forward.

1: Dividends are a privilege, not a right
2: Beware of chasing high yields
3: Focus on cash, not earnings
4: Diversification still matters
5: Selectivity is paramount

Source: Motley Fool

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