The tricky thing is, you might find a stock with a high dividend yield. But WHY is the dividend yield high? If the stock were so attractive, why aren't other smart investors buying it (which would drive the price of the stock up and drive the dividend yield down). In almost all cases, there is a good reason why the dividend yield is high. I think in most cases where you might use a stock screener to find the equities with the highest dividend yield, it is going to show you companies that are in such financial distress that the market believes that the stock will lose far more value in the future than it will generate in the form of dividends OR the market believes that the dividend will be cut in the near future. So if you go off buying high dividend stocks willy nilly, your investment returns might end up in the gutter.
Blue chip stocks and utility stocks like your local electric company or gas company, fortune 500 companies with a P/E of less than 20 and pay a DIV. of 2.75% or better are ALWAYS less risky than small caps.
God bless
which is why serious investors buy blue chip shares rather than rely on speculation
What are blue tip shares??
Let's say you have a property/asset that pays 5% of its original price in annual rent/dividends. Even if that asset declines in price, you are still going to collect more and more cash over time, where you can make an overall profit off of it even if you sell it for less than you bought it.
Whereas if you buy a (non-dividend) stock and the price of that stock goes down, you retain a loss after selling it.
