Diary of a Dividend Diva: On Avoiding Temptation

As you accumulate income using the dividend-capture strategy, the temptation will arise to take shortcuts either in order to reduce your turnover, or to generate really, really fat levels of income. I practice (and advocate) a target range for each individual dividend in a range of 0.7% to 1%, which to me balances the level of turnover you must use and the risk inherent in each individual stock.

Much larger dividends will often come along, and they'll sit there like sirens on the rocks, whispering to you in an enchanting voice to "buy me, buy me." As beautiful as these yields look, you're better off not yielding to the temptation, so to speak....347 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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