We recently held a roundtable on the best dividend stocks for beginners.
It was well received, so senior analyst Anand Chokkavelu sat down with James Early, the lead advisor of the Motley Fool's dividend investing service, Income Investor, to dig further.
Asked for the biggest mistake beginning dividend investors make, James pointed to ignoring the quality of the dividend. Beginners see a high dividend yield and jump in, but more seasoned investors look to make sure the dividend is sustainable. The first step in that process is looking at the payout ratio, or dividends paid vs. net income.
Two dividends that James believes are 1) sustainable and 2) suitable for beginning investors are Johnson & Johnson
Watch the video here:
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