Beat the Market with Dividends

Timing the market is tricky, but buying dividend-paying stocks is not

Josh Peters, CFA 20 February, 2012 | 3:12PM
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I've had quite enough of the buy-low, sell-high circus. There are better ways of making money from stocks - strategies that don't rely on analyst upgrades, quarterly earnings estimates, celebrity CEOs, or patterns on charts.

I've gone back to key principles: Investing in stocks that pay me back in cash through large, reliable and growing dividends. I am not trying to double my money every 90 days with high-risk picks, but rather I am looking to preserve capital, earn attractive income and encourage long-run wealth accumulation.

How many of Wall Street's myths are you holding dear?
For me, investing is more than a business. It's a mission. Wall Street is not telling the truth about how stocks really work, and almost no one seems to have a vested interest in making money for clients first and themselves second.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Josh Peters, CFA  is the editor of Morningstar DividendInvestor, a monthly newsletter available in the US, and is author of The Ultimate Dividend Playbook.