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Investing Income - Only From Stocks Of Safe Companies?

By : Richard Stooker    99 or more times read
Submitted 2012-04-16 07:20:10
People who want to receive investing income, don't want to gamble.

Which are the Safe Stocks?
Nike Tn
Is it possible to invest in only safe stocks?

First of all, there are no stocks that are 100% guaranteed safe. That is simply not a reasonable criteria. We don't know the future. The economy changes. Industries change. Companies change. Markets change. tn pas cher

If you're young, you'll probably find this hard to believe, but not too many years ago IBM and General Motors were considered the safest companies in the United States and, therefore, the entire world.

Now IBM is just one more tech stock scrambling to distinquish itself, and GM stands for Government Motors.tn requin

Don't Tie Your Portfolio to One Company

Therefore, it's dangerous for any stock investor, whether interested in capital gains or dividends, to depend on any one company.

Although it now seems unlikely, there's no guarantee Microsoft and Wal-Mart will never go the way of Lotus and K-Mart. nike tn pas cher

So how can you be sure the stock you buy today will continue to pay dividends -- and preferably ever-increasing dividends -- until you no longer need it?

You can't.



Companies Change, Growing or Going Downhill

That's why I advise income investors not to buy individual company stocks.

Your safety does not depend on any one company. It depends two things:


Types of companies

Diversification


I say types of companies because, as a general rule, some types of companies pay dividends and others don't.

Put Your Faith in All Kinds of Dividend Paying Companies

Older, established companies with recognized consumer brand names or dependable markets generally pay dividends. So do utility companies.nike tn


Some types of companies are structured so that they must pay dividends, to avoid paying income taxes. These are Real Estate Investment Trusts and (in the United States only) Master Limited Partnerships.

However, I advise against buying just one or a few of these, even the best such as Altria and Coca-Cola.

I can't promise that even the very best in each category will remain the best throughout your lifespan.

Diversify As Much as Possible

That's why diversification is the answer -- buy into an index that covers all or a good part of each type of investment. If one company goes downhill, it will be removed from the index and replaced with a better one.

And buy into as many indexes of income investment categories as possible. That way, if bonds go downhill, you're protected with stocks. If something happens to the energy field, your loss is reduced thanks to your real estate.nike requin


And diversify by location. If all American companies go downhill, you'll have income from investing from Europe, Asia, and South America.

That way, you always own a piece of the entire investing income pie.
You can build a permanent, income generating retirement portfolio. Click here to get the information you need to effectively make money from your investments whether the markets go up or down. If you're ready to discover how investing income can help you too retire with financial security, visit this page, enter your email address into the form and click on the Submit Button. Then go to your inbox and verify that. It's free for the taking. http://www.incomeinvesthome.com/. hostgator nike requin pas cher
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