Rules to Follow for Buying Dividend Stocks

Many retirees and baby boomers are now rethinking the entire retirement process. CDs and top-quality bonds no longer pay enough interest to keep up with inflation. With these options out of the picture, it's no wonder the stocks of big, solid, dividend-paying companies are soaring. Investors hoping to earn a higher return are pouring money into them with the hope of staying ahead of inflation.

I'm a firm believer that the days of buying a company stock, putting it in a drawer, and never worrying about it again are over. At the same time, folks contemplating their retirement finances will likely have long-term relationships with certain dividend-paying stocks.
Tip No. 1: Long History of the Company Paying the Dividend
Tip No. 2: Payout Ratio of No More Than 80% of the Company's Earnings Per Share
Tip No. 3: Worldwide Market Presence
Tip No. 4: Stable Product Line
Tip No. 5: Lots of Cash

Source: Safe Haven

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