Has picking stocks for dividend income been discussed pretty thoroughly already? I’m thinking of REIT’s and BDC’s (business development companies), and utilities/yieldco’s, as well as just good stocks that pay good dividends.
Ed,
I have some dividend stocks as part of my portfolio, but I never buy a stock JUST for the dividend. I have to believe the business is solid. With that in mind, I would think that no one would be against discussing a solid business just because it paid a dividend ;o)
On this board we try to stick to discussing growth stocks as much as possible per Saul’s wishes. There are other Motley Fool public discussion boards where these kinds of stocks are discussed however.
OK, so I’ll look for growth dividend stocks to recommend here! I think some REIT’s and BDC’s would qualify; I just need to do a bit more digging.
Since Saul is making withdrawals from his account to pay bills, dividends can’t hurt, since they’d make it less necessary to sell shares, possibly at an inopportune time. I’d say the same thing about selling naked puts and covered calls, but I know those areas are off-topic.
I’ll make one suggestion in this area for now. Don’t buy Frontier Communications (FTR), despite the 17% dividend.
My back-of-the-envelope calculation: if you had bought the stock 36 months ago at $4 a share, you’d now have collected $1.60 in dividends, but would have lost roughly the same amount back in share price.