Investing For Dividends

">Of course you don’t want to buy stocks that
are just going to go down.  I don’t like to
Dividends can be very great, especially when thecatch a falling knife, because it can cut your account
markets are going sideways.  So what do you lookin half or worse.  Dividend stocks are best looked
for?for when there is at least some sort of stability in
Investing for dividends can allow you to make a nicethe stock market.
consistence cash flow from your investments.  So4.       It should offer dividends
what should you look for when finding long termGood dividend stocks should, of course offer
dividend plays?dividends.  Not all stocks do, so you should check its
1.       Strong Companieshistory to see if it has been paying and how much. 
The company has to be pretty stable to say theYou might also want to make a minimum you would
least.  If a stock goes down 50% it doesn’tbe willing to accept before you buy the stock.
matter that you got an 8% dividend.   So, only5.       Does it offer options?
strong companies, or diverse ETFs should be boughtDoes the stock offer options on it?  Personally I
if you are going to hold it for a long period.  It isdon’t like getting into long term plays unless
important to look for low risk investments with thisthe stock does indeed offer options.  This way I
strategy.can sell covered calls on the stock and get in another
2.       When Stocks are undervaluedmonthly premium from it.  This is big for me
The best time to buy long term stocks is whenbecause more often than not the cash flow you get
stocks are undervalued.  This way you are notby selling calls will trump the cash flow you get by
getting into a stock that is many times above itsdividends.
true value.  And if you are buying the stock for cash flow why
3.       When stocks aren’t going downnot be able to profit from both.