Protection and High Yields

The markets are volatile right now, so you urgently need two things:

First, you need protection against the risk of stock price declines. You can get that by using stop loss orders and/or reverse index exchange-traded funds.

Second, you need solid, high yields you can rely on quarter after quarter, giving you double, triple — even quadruple — the best return you could get on Treasuries, bank CDs, or virtually any other fixed-income investment.

You can get those from a select group of common stocks. But you can’t simply scan the paper and blindly pick out the companies that happen to be paying the biggest dividends today. For each and every high-yielding company you invest in, you need to make sure they have a solid history of faithfully paying — and even raising — their dividends year after year. You want to make sure they have the financial wherewithal to continue dishing out juicy double-digit dividends in good times or bad. See who’s paying the biggest dividends today so choose wisely!

To your dividend investing success,

InvestingInDividends.com

Making Money from Index Additions

There’s no quibbling with the popularity of index funds — for investors seeking a simple approach to investing, these vehicles are a real boon.

But they can also help those of us who still try to beat the market, especially when we’re already holding a stock before it gets added to a major index …

Remember, many passive managers will buy the stock once it goes into their target benchmark. The resulting stampede can result in a nice pop in the stock’s price. That’s especially true in the case of additions to the S&P 500 since so much money is tied to the index! See what other dividend index funds area popular by reading our article on “A Little-Known Benefit of Stock Indexes “.

To to your dividend investing success,

InvestingInDividends.com

The Next Dividend Stock to Get Bought Out

Dow Chemical said it was acquiring Rohm & Haas at a huge premium, and ROH shares shot up 64% when the news hit the wires!It just goes to show you that despite all the bad news coming across the tape, there are rays of sunshine if you know where to look. It also proves that many well-known, dividend-paying stocks remain attractive — not just for their income potential — but also because of their stable businesses and hidden value. Find out more about dividend-paying stocks and why you should get in on this.

To your dividend investing success,

InvestingInDividends.com

Three Ways to Guard Against Market Drops

Rough market?

Think dividends! June wasn’t kind to the stock market. In fact, the S&P 500 had its worst month since September 2002 and its worst June since 1930. So far, July hasn’t been much better.

End result:

The S&P 500 is now back below 1300, the same place it was at in the beginning of 2006. In other words, it has given up all the gains made throughout 2007.

In fact, the S&P 500 was at the very same 1300 level as far back as 1999. In between were massive rallies, sure. But over the last eight years, the market has basically gone nowhere.

Don’t despair, though. Select dividend-paying shares are the perfect way to get paid while the market idles in neutral and interest rates remain insultingly low.

Remember, dividend-paying stocks have performed better during past bear markets than non-dividend-paying shares. Want proof? Just read this special report “Why Dividends Will Almost Always Make You Money.”

To your dividend investing success,

InvestingInDividends.com

A Great Personal Finance Tip: Use a Rewards Card

By no means are we advocating racking up debt on a shiny new card. Rather, we suggest you buy only what you can afford, and pay for it all with one card that actually gives you something back (cash, airline miles, whatever). As long as you promptly settle up the entire owed balance on every due date, you’re effectively getting something for nothing!

Plus, you receive a nice monthly inventory of all your expenditures, which is great for honing your budget. If your statements come electronically, you might even be able to dump them right into any financial management software you use.

One word of warning, though: Make sure the card you choose doesn’t carry hefty fees. You might consider paying a low annual fee if you’ll be receiving outsized benefits overall. But you should also know that there are rewards cards out there that don’t have annual fees at all.

According to a recent Consumer Reports survey, American Express’ “Blue Cash” card was one of the overall best cash-back rewards cards. So you might consider using that as a benchmark when you do your research. Learn about four more great personal finance tips that you can use when you start investing in dividends.

To your dividend investing success,

InvestingInDividends.com