AboutJay Kay Expertise As a private investor for the past 40 years, I have experienced both bull and bear markets, and have lived to tell the tale. I should be able to provide you with serious, practical insights into managing stocks, bonds and mutual funds in your portfolio, along with useful information concerning most aspects of personal finance. No specific stock/bond recommendations furnished.
Question Jay:
I am at the point in my life where I cannot afford any more Wcomms.
I would like to invest in only companies which pay high dividends.
Can you suggest some comopanies or groups of comapnies that typically pay high dividends.
I have lost too much money chasing growth stocks.
Hope you can help.
Nick M.
Answer Much depends on what you mean by "high dividends." Among the groups that have generated the highest yields in recent years are real estate investment trusts, and utilities. Like any other groups, these carry their own risks: their prices do not always rise, and their dividends do not always increase.
I might add that if you are looking for high income from an investment, you might wish to consider bonds - although they, too, have their pros and cons.
The yields on each type of investment mentioned above are readily available on the Web, but those numbers will not tell you all there is to know. A yield that is well above average is at that level for a reason; such a reason should be thoroughly investigated and understood so that you do not assume more risk than you are willing to bear.
