In my personal opinion, far too much is said about gold and silver, and far too little is mentioned about dividend stocks. Commodities have long thought to be one of the best investments, since they have been steadily rising, and are see as stable monetary items that will always hold their value. The truth is that gold, while on the rise the past several years, seems to go through its cyclical ups and downs over the past few decades. In fact, had you invest in gold 30 years ago, you would barely outpace inflation over the same time period. That isn’t to say that if you bought gold 10 years ago, and sold about 10 days ago that you wouldn’t have made quite a tidy profit, but the last time I checked “magical crystal balls” do not yet exist.
Now don’t get me wrong, Im not telling you to unload your gold investments (if you have any) just because it’s dropped $400 an ounce over the past week, I am simply telling you what I’ve been telling you all along, think about diversifying into some other investments. Dividend paying stocks are widely undervalued, in both terms of investor sentiment and P/E ratios. Personally, I look to solid dividend paying stocks that have steadily increased both dividends and share price year-over-year for at least the better part of a decade. That list is short and distinguished, but then again, so is my portfolio. My decision to start loading up on ADP and JNJ over the past few years has paid off immensely, and my retired self will thank me for it. Likewise, my dividend paying mutual fund VALIX is steadily on the rise, while at the same time paying me a premium in dividends. My goal is to get a solid monthly income from these investments in 20 years, were I can replace my current monthly income from working. Hopefully this will afford me an early retirement, but only time will tell.
Enough of my personal situation, as this article is about informing all of you, the public! Don’t let the wildy chaotic media sway your investment decisions. Take a long position in some proven dividend stocks with stellar track records, you will sleep well at night, and you will be well on your way to meeting both your short term and long term financial goals.