Be Sure to Research Your High Dividend Stocks Before Buying Them

Based on an article published by the Canadian Securities Institute, there is an alarming number of investors who do not do research before buying investments such as high dividend stocks or mutual funds. The article states that 49% of investors did not research their most recent investment, instead relying on the sole advice of their investment adviser. For this reason alone, I still want to encourage investors to read The Single Best Investment: Creating Wealth with Dividend Growth. It is a must own for investors looking to invest in high dividend stocks and ensure their investment brokers are giving them good advice.

Here are a couple of key points from the article:

• Investors understand the importance of investing and the value of investor education. The majority of the respondents (72%) are saving or investing for their future.
• More than half of the respondents understood the importance of key concepts like diversification (64%) when making financial decisions.
• However, most (88%) believe a financial plan is important, but over half (58%) don’t have one.
• Most respondents (92%) agreed on the importance of conducting independent research before investing. However, 49% did not personally research their most recent investment, and 22% invested immediately after hearing about an investment opportunity. Among the 44% of those who didn’t personally research their most recent investment, 72% bought the investment solely on the advice of their financial adviser

To invest successfully, even if you use a broker, you must ensure you understand on some level what your broker is buying for you. A thorough education on investing concepts is important. When it comes to high dividend investing, the best resource is The Single Best Investment: Creating Wealth with Dividend Growth. This book provides a methodical and realistic approach to investment decisions to help you understand what it is you are buying.