3 Dividend Investing Strategies for Safety and Return

I love dividend stocks, but with more than 7,000 companies paying a dividend, finding the best investment for a portfolio can be challenging. To narrow the field, I like to invest across themes.

Themes could be around trends like the aging population, healthcare stocks, or the need for safety. Check out the three themes below to help you pick great dividend stocks for your portfolio.

Utilities and Consumer Staples for Yield and Safety

One of the first things investors look for in dividend stocks is a consistent income and safety from the ups and downs of the regular market cycle. 

Even if dividend stocks did not consistently outperform their non-dividend peers, you get the constant protection they provide when your neighbor is tearing his hair out because his momentum stocks tumbled. 

Investing only in the safest dividend stocks and sectors means you may be giving up growth that will help meet your financial goals.

The New Breed of Dividend Tech Stock

The new breed of technology companies that pay dividends for portfolio growth is a great addition. Some of the more extensive tech dividend stocks like Microsoft (MSFT) produce yields higher than the general market. 

Real Asset Dividend Stocks for Inflation Protection

Even though inflation has dropped to historical lows, it can eat away your income over a more extended period.  

That cash flow you collect now will only buy two-thirds of the amount of stuff in 20 years, even at a low 2% rate of annual inflation. And low inflation hasn’t been the norm. The dollar lost 90% of its purchasing power over the five decades to 2012.

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