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?

When it comes to selecting dividend stocks, one of the most important items to look for is consistency in raising dividends. Sure it is easy to increase dividends when the economy is booming and business is good, but to be consistent a company has to increase dividends during the tough times.

If the goal of dividend investing is to find and buy dividend stocks that will continue to raise their dividends, it is not enough to only look at a company’s free cash flow . Many companies generate significant free cash flow, but often that cash is already spoken for in the form of debt.

Vanguard Group founder Jack Bogle has not changed his tune as a result of the economic downturn. At the ripe age of 80, he is still preaching buying-and-holding domestic stocks and bonds, cheaply, in an asset allocation that’s appropriate for your age.

Emerson Electric Co. primarily makes backup power equipment for telecom and Internet providers and users, climate control components, and electric motors. Linked here is a detailed analysis and commentary.

What do you do when the economy tanks and the stock market follows suit, but you are still generating a lot of cash? Many people would look for bargains in the market. Wal-Mart (WMT) [analysis] has done just that.

The main focus of dividend investing is finding and buying dividend stocks that will will likely continue to raise their dividends in the future. In making this determination there are many factors to consider.  One of the more important metrics to consider is the Dividend Payout Ratio.

SYSCO Corporation, through its subsidiaries, engages in the marketing and distribution of a range of food and related products primarily for food service industry in the United States and Canada. Linked here is a detailed analysis and commentary.

It is well-documented that a significant portion of the historical equity returns are a result of reinvested dividends. Performance in any given year was driven by capital appreciation, but long-term returns were largely the result of reinvested dividends.

When the economy and the market starts heading south, many investors start buying Dividend Stocks. They have long been considered a defensive position in turbulent times. Given many investors recent defensive stance, one might ask how about some real defense stocks, as in the Aerospace and Defense?