The dividend investing do’s are very specific, however the “what not to do when investing in dividend stocks” are also very specific. Most of them count for investing in general, however dividend investing has some more what not to do’s when investing. Here you’ll find an list of the what not to do when investing in dividend stocks.
• Use borrowed money to invest in dividend stocks.
• Not applying money management.
• Not applying any form of risk management.
• Not applying any form of strategy.
• Buying and selling dividend stocks based on emotions.
• Not checking the historical dividend.
• Buying because it’s a great tip.
• Investing because it’s a cheap dividend stock.
• Buying and selling only for the dividend.
• Not performing any research.
• Only investing because of high yield.
• Only focusing on current dividends and not on the future dividends.
• Not looking at the dividend pay-out ratio.
• Not keeping an eye on your investments and market conditions.
• Following the media on investments.
• Following annalists paid by the company whose stock you’re
• Use a broker which asks high commissions in general and for dividend
• Not having a strategy for dividend re-investment.
Those are the main what not to do when investing in dividend stocks. If you keep these in mind when investing in dividend stocks, you should be able to avoid the big pit falls.