By Jeff Reeves of InvestorPlace
For dividend stock investors looking for regular paydays to add to their retirement funds, things have finally started to look up in 2010. High-yield dividend stocks are back in favor as companies add to their payouts and investors look for low-risk ways to supplement their retirement investment funds. Dividend stocks with high yields offer stability as well as a regular payout, making them the perfect investing strategy right now.
As we reported in April, dividend stocks are increasing payouts across the board, from high-yield dividend aristocrats to up-and-comers. In the first quarter alone, dividend stocks added more than $6 billion in an effort to make back some of the ground lost by cuts and cancellations from the high-yield heyday before the financial crisis. Dividends have been making a comeback, with 284 companies raising them in the first quarter, up 47% from a year earlier, according to Standard & Poor's.
Simple trading strategies are often the best, and relying on a regular dividend payout to offset volatility makes a lot of sense in the current stock market. And best of all, whether you're a growth investor who's focused on stocks increasing earnings and sales or a value investor focused on price-to-earnings ratios or oversold bargains, high-yield dividend stocks can easily be worked into your strategy without changing your core investment tactics.So where do you find high-yield dividend stocks or reliable companies that will keep paying you quarter after quarter? First of all, keep in mind that previous dividend payouts are no guarantee of continued success. And many financial Web sites artificially inflate a stock's dividend yield by annualizing previous payouts and not looking to the future. To safeguard your dividends and ensure your retirement funds keep seeing that regular trickle of money, it's a good idea to focus on companies that are raising their dividends right now and have a small window left before the next payout.
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