How to Invest in Dividend Stocks

If you have a long-term investment horizon of at least ten years, your best investment is not mutual funds, ETFs, growth stocks, bonds, or gold, but a diversified portfolio of high quality dividend stocks. Here are the steps to build your investment portfolio to achieve the best long term returns.

Understand that stock return = dividend yield + share price growth. For example, a company that pays a 5% dividend yield and appreciates by 5% every year has an annualized 10% total return. High quality is necessary to ensure that the dividend will last and will grow at a satisfactory rate.

Source: WikiHow

Related Articles:
- Dividend Stock Bubble: Is It Even Possible?
- 8 Dividend Stocks To Consider While Waiting on Apple to Pay Its First Dividend
- Holding Bonds Could Push Your Portfolio Into The High Risk Category
- Love People, Use Dividend Stocks
- The 2012 Dividend Achievers