Whats the best way to generate income from stocks over the long term?

Pick large blue chip companies that pay dividends? Or invest in Small,Mid cap stocks that don’t pay dividends but has a bigger reward and risk.

Related Blogs


This entry was posted on Wednesday, September 1st, 2010 at 6:52 am and is filed under stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses to “Whats the best way to generate income from stocks over the long term?”

  1. Spread your money over index funds for long term income. Indexes cover several different stocks and are more conservative.

  2. Your question begs the issue:Are you seeking capital gains OR income as you state?Split between the types to lessen the risk. Dividend paying stocks tend to be less risky than mid-caps that pay no dividends. But the capital gain potential is greater for mid-caps. A mix of the two in your portfolio may give you the best TOTAL RETURN with less risk.

  3. There are two main reasons to invest in stocks: for income (dividends) or for growth (capital gains). So you’ve answered your own question.

  4. It depends on your long-term objectives and your risk tolerance (i. e. intestinal fortitude). You can try a 50-50 strategy. Why not do a 50% in SPY the exchange traded SP500, and a 50% in MDY the exchange traded MidCap Index?

Leave a Reply