Any investor worth their salt has dividend stocks amongst their investments. Unfortunately I am an extremely cautious investor and I have not explored this area fully yet. I always get confused whether I want a stock with a good dividend yield or one with potential growth or both. I think I need to focus more on established companies with a good dividend record.
I currently have two dividend stocks, Royal Mail Group and National Grid and am in the hunt for more. My dividend stocks are in my stocks and shares ISA which means I do not have to pay tax on dividends. I do not withdraw my dividend income, instead I prefer to reinvest it in more shares. I think this is a good strategy with Royal Mail because right now there does not seem to be much growth with the company. I am still waiting for my first payment from National Grid. I will hopefully pick up more FTSE 100 dividend stocks very soon.
Current holdings are Royal Mail 237 shares, National Grid 96 shares.
2014 Dividend Income
Royal Mail £45.87