Is buying stocks that give dividends the best way to invest?

k13 · 01-24-12, 12:31 AM

Couple years ago you could have had nice energy trust funds producing 15% div's.

NYSportsGuy210 · 01-24-12, 12:34 AM

Forget the bull market for 2012. Volume trading is at an all-time low and prices of stocks will reflect this shortly. Dow might go down to the 9500 range by December 2012. Stay Bearish this year.

UntilTheNDofTimE · 01-24-12, 12:34 AM

As a conservative investor yes. As a person in retirement that wants guarenteed income yes. For someone in there 20's n 30's no. When young you need to really diversify between stable income producers and agressive holdings. Finding the moot point like anything is the difficult part.

TheCentaur · 01-24-12, 12:40 AM

Dividends sound nice especially considering the low int. rates on savings and money markets. I just don't trust the number the market is at these days, and I think the only constant with the modern stock market is volatility. Who knows what new disaster might come out like the mortgage crisis did to drive it way down. It could be anything, but it's hard to imagine some new info or scenario that could cause it to skyrocket as much as something bad could drive it down. Just my opinion.

ballahollic2 · 01-24-12, 12:41 AM

best conservative approach for sure

neverstoppers23 · 01-24-12, 12:42 AM

if you are young you can be more risky, in your investments. but imo, its never good to pick individual stocks. the average investor does not need to dabble into that market, stick to mutual funds that will meet your needs and talk to a financial adviser about going into over-sea markets.

i have said this before, there was a long conducted study we researched in my bus. stats class on investors and just picking random stocks out of the wall street journal top 50. there was no different in long term success.

but my adivce to just the average investor research some good mutual funds. a-lot of info is online now. but i always reccomend people to talk to someone about it,because likely s.c will not be there in its current state. and it will be good to just start saving now and investing. right when you get into the work force. 1-5 percent each each for 30 years, with avg return rates. will add up fast. esp. in retirement accounts where you can put earned money in tax-free.

robzilla · 01-24-12, 12:55 AM

Originally posted by neverstoppers23

if you are young you can be more risky, in your investments. but imo, its never good to pick individual stocks. the average investor does not need to dabble into that market, stick to mutual funds that will meet your needs and talk to a financial adviser about going into over-sea markets. i have said this before, there was a long conducted study we researched in my bus. stats class on investors and just picking random stocks out of the wall street journal top 50. there was no different in long term success. but my adivce to just the average investor research some good mutual funds. a-lot of info is online now. but i always reccomend people to talk to someone about it,because likely s.c will not be there in its current state. and it will be good to just start saving now and investing. right when you get into the work force. 1-5 percent each each for 30 years, with avg return rates. will add up fast. esp. in retirement accounts where you can put earned money in tax-free.

but dividends help me now. retirement investments do nothing if i die before retirement age.

itchypickle · 01-24-12, 01:16 AM

Sector ETFs and the leveraged ones. Next best thing to Mutuals and will give you more swings.

Dividend stocks are great but depends on your timeframe and overall size in your positions to really see a net positive from them.

Seek out some help from a planner if you can....not a 'stock broker' like the stereotypical image but one from the wealth management department at your bank or even Scottrade office. Yes they will probably take some compensation from front loads on funds but it's worth it in the long run...just decide if you want a fee for service guy who will basically give you a 'road map' and send you on your way and a one time flat fee to implement it or get a managed fund where you will pay based on performance.

Good luck

Chimneyfish · 01-24-12, 01:24 AM

Originally posted by robzilla

What is the best way to get my money working for me? (other than betting)

Here's the only advice you need to hear about the stock market: diversify as much as possible and then wait a long time.

I like index funds and ETF's. You can't beat the market, so you might as well join it. Buy everything. You'll do better than almost every mutual fund in the long-run, not to mention the money you'll save on not having to pay some douche to manage a fund for you.

Waterstpub87 · 01-24-12, 02:05 AM

Dividends are good because it is cash now. Some investors, tending to be institutional ones, don't like dividends. This is because dividends could be reinvested into projects that would generate positive cashflow and increase the stock price. It depends on what you want to do. If you bought corporate bonds instead, you would most likely get more then the dividend. If you hold the bond for the full term, you wouldn't have to worry about changes in price because you know the cashflows you are getting. On top of that, should the corporation go bankrupt, you would have first claim to its assets as a bond holder, instead of getting the leftovers as a stock holder. It depends on what your trying to do, but for money now, bonds might be a better choice.

sickler · 01-24-12, 02:22 AM

Robzilla, there's too much info out there.

I'm in a position where I'll have to invest a large chunk of money soon.

I'm a cynical person, in the back of mind is a financial advisor might not act in my best interests.

NYSportsGuy210 · 01-24-12, 02:23 AM

Buy GE and hold for a couple of years or wait for Apple. They might start paying a dividend on their stock too.

ericthegangster · 01-24-12, 02:26 AM

The best way to invest is entirely dependent on your risk tolerance and time horizon. Based solely on the fact that you are posting here, I can safely assume your risk tolerance is rather high. You also made the statement "dividends help me now" from which I conclude you have a short time horizon.

I would suggest looking into a mutual fund that focuses on the tech sector, as that sector is typically higher risk/higher reward. However, it is much safer than sticking all your eggs in one basket by picking an individual stock.

sickler · 01-24-12, 11:41 AM

How much are we investing? Different approach for different amounts.

Homework

sickler · 01-24-12, 08:48 PM

Through a personal recommendation there is an arranged meeting with investment banker Mr. Handinyourpocket.

Will Mr.Handinyourpocket try to steer me to invest the money where he will receive a commission, referral fee, whatever? Double dipping if you will - a fee from me and compensation from wherever the money goes........

antifoil · 01-24-12, 10:28 PM

the best way to invest is to work really hard a getting a job in politics. you need to be a congressmen or work for one.

their portfolio bet the market average every year and they don't get in trouble for insider trading.

dbartinbwgc · 01-24-12, 11:03 PM

Look into writing covered calls.
Its like getting a divided every month or so depending how long it write it.
But you could lose out on any large gains of might gets called out on a stock.
but you get money now and some security.