Thoughts and observations for those investing on their own or contemplating doing it themselves.
If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at http://www.rwinvestmentstrategies.com. If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.
Friday, April 15, 2011
Dividend Stocks and Dividend ETFs
The newbie investor does have to understand, however, that dividend stock investing isn't just a matter of picking the highest dividend stocks. A real key is sustainability. The long-term record of dividend payments and whether they have been increased on a regular basis is important. Whether companies will maintain and possibly increase dividends in the future depends on their financial health and prospects.
For those interested in going the exchange traded fund (ETF) route, an excellent article "Avoiding the Dividend ETF Trap" by Michael Rawson CFA, discusses how to pick ETFs that concentrate on dividend stocks. His article provides a useful table for comparison purposes that presents performance and states the approach used by ETFs in their dividend stock selection process.
I highly recommend the Rawson article to those seeking dividend ETFs. Another useful resource is the "Seeking Alpha" income investing page.
Posted by Robert Wasilewski at 8:15 AM
Labels: dividend investing, DIY investing
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Excellent blogs and I follow all of them! I used to be a regular at Motley Fools but these days turned off by their constant sales pitch!ReplyDelete