A stock with a high yield doesn’t mean much if the dividend is cut or eliminated, and the stock price declines significantly. Sometimes it is desirable to accept higher risk for a higher yield. Other times we may be accepting higher risk and are not being adequately compensated for the additional risk. What can we do to help gauge the risk of an individual stock?

If income investing were as simple as picking the stock with the highest yield, everyone would be an expert. Most assume (rightfully so) that yield is heavily influenced by risk, but much more goes into determining yield. Below are several important factors that influence a stock’s yield, along with some illustrative examples:

Having narrowly missed the tech bubble bursting, I purchased my first dividend stock on December 11, 2003. I had heard dividend investments were supposed to be safer, but knew very little else about the strategy. I was fortunate enough to accidentally buy enough good dividend stocks to learn the “secret” of dividend investing.

What a difference a year makes. This time last year we were looking at big-name dividend cuts and very few increases. Last week’s 16 increases set the stage for this week’s flood of companies, large and small, raising cash dividends paid to their shareholders.

’Tis the season for stock predictions! Virtually every financial writer will pen an article selecting his or her top picks for the upcoming year. I enjoy reading them and the logic behind the picks and sometimes there is a gem to be found.

Driven by computers that cost more than the average person will earn in their lifetime the investment markets move at light speed. To keep pace hedge funds, mutual funds, institutional investors and multi-billion dollar money managers spend large sums of money on high-tech tools to give them an edge.

What makes a good dividend stock? Every dividend growth investor is looking for a stock that will increase its dividend every year I have found that stocks that are able to do this share some common characteristics.

In everything we do, we always want to be the best or be associated with the best. You never hear fans yelling, ‘We’re number 2, we’re number 2′, while holding two fingers in the air.  The same is true when selecting dividend stocks.

I maintain an extensive database with a minimum of 10 years of information on each of the 110+ stocks that I track. This data is gathered from various sources deemed reliable.  Most data is generic and can be pulled from various sites. That is except some S&P risk and quality information (RQ).

How much money will you need for retirement? This obviously is very important question, but also a very difficult question to answer. Many factors and assumptions that go into making this estimate With so many estimates and assumptions, there is a high probability the estimated number will be incorrect.