Friday, August 5, 2011

Fund Managers go for Dividend Paying Stocks

Fund Managers Tout Dividend-Paying Stocks In Risk-Aversion Play

If you are a long term investor like me then hopefully you have discovered Blue Chip dividend paying stocks. Only the best most stable and trustworthy blue chip stocks tend to pay dividends. And if you are a long term investor (5 to 10 years or more) then investing is a sort of long term strategy. And a part of this long term strategy is only buying stocks that pay dividends. By doing this when you have to ride the roller coaster of the stock market through crashes like yesterday because of worldwide panic selling by day traders and inexperienced investors and just people panicking for whatever reason, you are going to do much better all the way through because you are also making dividends. Another trick many investors like is by having about 35% to 40% of their portfolios in Municipal Bonds from the same state they live in. During the Great Depression municipal bonds were the single most constant investment during those times which are similar in many ways to now.  Only through diversification of your investments between real property (paid for) and stocks bearing dividends (blue chips with worldwide business) and municipal tax free bonds from your own state and paid for already real property that you can afford the property taxes on are you diversified enough for almost any potential catastrophy investment wise. Of course there are other things that you can do like buying Gold but as you have noticed with Gold it is something one tends to buy and never sell except in a national or weather emergency and that one keeps for years as a way to protect ones family from national or international calamities.

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