Motley Fool Income Investor is The Motley Fool's premier dividend stock-picking service. The Income Investor team, led by advisor Michael Olsen, CFA, seeks to find the best income stocks for the newsletter's thousands of subscribers.
Dividend stocks can be attractive investments for a number of reasons. First off, there's the dividend itself: Cold, hard, cash paid out to shareholder on a schedule (usually once quarterly). And there's what the dividend usually says about the business: For a stock to be able to pay out a regular dividend, that usually means the business is making enough profit to afford a dividend to shareholders. That's a good sign about management's confidence in the company's future stability. Companies with these traits tend to be larger and more diversified (think Procter & Gamble or ExxonMobil as opposed to, say, a small-cap biotech), which generally gives them greater downside protection and resilient business models.
If that all sounds attractive, Income Investor is a stock service worth checking out.
How Income Investor picks great dividend stocks
Contrary to what many people believe, higher dividends aren't necessarily a good thing. Sometimes a high yield means that investors have bid down shares with the expectation that the business has minimal future growth – or even expect the dividend to get cut sometime in the near future. On the other hand, a tiny dividend...isn't much of a dividend stock. To balance these needs, the Income Investor team seeks an average dividend yield of 3% or so across its picks. Keep in mind, plenty of stocks will be well below that yield – usually because the Income Investor team sees tremendous growth potential in that dividend. That's a good thing – because today's 1% yield could turn into a much larger payout in the coming years.
Michael Olsen andteam also seek out companies with great management teams and business models that have some kind of advantage over the competition. They try to find companies whose potential the market doesn't adequately appreciate – with the goal of making Income Investor subscribers extra money in the stock market. All of these viewpoints are encapsulated in a broader philosophy that underlies all of The Motley Fool's stock-picking services: We're investors with a long-term, business-oriented mindset.
With the Income Investor team's philosophy explained, let's turn to what the subscription provides.
Included in your Income Investor subscription...
Income Investor is a stock newsletter, so it provides stock picks. Subscribers get a new investing idea each month. The team also combs through the entire universe of stocks they have recommended to identify a handful of "best buys now" – timely ideas looking particularly attractive as investments – each month.
The team also provides regular updates on every stock they have recommended, including quarterly updates when earnings come out and quick takes on news and major price changes. When something thesis-changing occurs, the Income Investor team usually issues new guidance on the stock – even recommending that investors sell shares when something sufficiently disruptive has happened.
Perhaps the most undervalued part of an Income Investor subscription is the message boards, where a community of engaged investors talk through the newest stock picks and educate each other on all kinds of topics related to stocks and personal finance.
Income Investor is on sale right now!
If you're ready to learn more about Income Investor and its rich history of winning stock picks, click here. Subscriptions are on sale for a significant discount, so now's a particularly great time to join up and start investing, better.
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