Expert: Dr. Joseph de Beauchamp - 2/27/2007

Question
I heard from some people that bluechip stocks are safer than income stocks, but that income stocks have higher dividends.  Which should I get, and what companies are good stock companies.

Answer
I would recommend that you stick to a mutual fund. Certainly, the higher the dividend, the greater the risk you are taking with principal. It is very difficult to select stocks without a lot of risk, and you should have at least 10 stocks of 100 shares or more. Most people are better served with a mutual fund. You might select one from the large book of Morningstar, and this is found in the public library. The book is too large to read online, so go take a look at this book, and look at "balanced mutual funds" section.

Dr. Joseph de Beauchamp