If you’re a retiree or income investor, then having a great dividend strategy is absolutely essential. Dividends are a great source of passive income, but not all dividend stocks are created equal. Avoiding key pitfalls can protect your portfolio from disaster, and making some really smart decisions along the way can drastically improve your results over the long term.
As you sit down to allocate your stock portfolio, consider these three investing tips to set yourself apart from the crowd.
It’s easy to get excited by a stock with a higher dividend yield than all of its peers, but it’s usually a mirage. There’s a reason the market has allowed the yield to creep so high — investors are likely expecting the dividend to decline.