Understanding Dividend Investing

Interested in dividends or dividend investing? Does the idea of collecting checks for the rest of your life, generating passive income sound appealing? Do you wonder how a company determines the total dividend payout? This ultimate guide to dividends was designed as part of our guide to investing in stock to help answer all of your questions and walk you through the basics step-by-step, from how to select investments to enrolling in dividend reinvestment programs.

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       Should I Just Buy the Highest Dividend Stocks for My Portfolio?

      Highest Dividend Stocks

      If you are a dividend investor, you can’t just pick the stocks with the highest dividends.  That may seem counterintuitive, but there is often a reason high dividend stocksappear so attractive. This can include problems in the underlying business, a dividend payout ratio that is much too high and threatens future growth, or a debt-to-equity ratio that makes investors believe the company can’t survive.  And that is just the beginning! Take a few moments to discover some things to consider when finding the highest dividend stocks for your investment portfolio …

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