Are the Highest Dividend Yield Stocks the Best Investments?
Retirement Income As our population ages, more and more investors are focusing on retirement. With retirement comes a greater emphasis on investing for income and less emphasis on growth. However with the prospects for inflation looming in our futures, growth of income remains a serious and necessary investor consideration. Investing in common stocks for dividends is generally considered a conservative strategy for prudent stock investors. However, not all dividend paying stocks meet the strictest definition of conservative or are considered safe. Also, it’s possible that higher current yield may not represent the best long-term investments. Dividend seeking investors should consider other factors as well. Factors such as quality, consistency, and current valuation are important to evaluate before investments are made. To illustrate the importance of these points we will look at two sets of five companies with very different characteristics. We will start with five SMID (Small to Mid C
