NEW YORK (TheStreet) -- Most self-directed investors should categorize stocks into two primary columns. Column A is dividend-paying stocks, and column B is every other stock that you're not going to buy.
Granted there are a select few that come along every now and then that can be considered for shorter-term capital appreciation, but otherwise sticking with dividend payers is more likely in the long run to increase your portfolio.
Dividend-paying company executives understand they must stay aggressive each quarter or risk being forced to cut the dividend (and upset investors). I believe it's the "in your face" number hanging out there that keeps the team relatively more focused than a company that doesn't pay a dividend. A team focus on bolstering earnings is synonymous with rising share price.
Many investors make the mistake of believing we continue to live in the world of old-school investing. In days gone by, if you wanted a stable high-yield dividend, you bought utilities as a retirement income vehicle.Today with computers and online access, large and small investors can find dividend-paying companies increasing in price. Having your cake and eating it too is more possible than ever. Obviously not every dividend-paying stock rising in price is a buy; consequently I search for those that offer a favorable risk-to-reward. Take a look and see if you agree.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV