From Nasdaq:

Income investors focus on dividends rather than capital gains, choosing stable, dividend-paying companies over popular stocks. However, they often make mistakes like falling for unsustainable high yields. Investors must assess a company’s business fundamentals and dividend sustainability before investing. Apple, Procter & Gamble, Kinder Morgan, and Target are recommended choices for income investing over riskier options like Walgreens and Costco. Factors to consider include dividend yield, the company’s business model, and buyback programs. By being cautious and choosing quality over quantity, investors can make higher returns over time. The Motley Fool Stock Advisor offers guidance for building a successful investment portfolio.



Read more: The Biggest Mistake Income Investors Can Make in 2024