Seven Potential Mistakes In Dividend Investing

While investors may assume that dividend investing is relatively straightforward, they commonly make mistakes that undercut the potential income and total return of their investments, says a new study by Forward (Forward Management, LLC) How Not to Invest in Dividend Stocks. "With more than 10,000 Americans turning 65 each day and bond yields near historical lows, dividend stocks are on the radar of many advisors and investors," said Forward CEO Alan Reid. "To be successful, however, investors need to understand the many ways in which dividend strategies may vary, and how much these differences can affect their long-term results."

The research paper identifies and elaborates on seven key mistakes it recommends that investors avoid: 1) Chasing lofty yields, 2) Relying on overly mechanical strategies, 3) Overlooking growth factors, 4) Succumbing to home market bias, 5) Having blue-chip tunnel vision, 6) Following the herd and 7) Giving macro factors too much weight.

Source: Globe Newswire

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