I Think Dividend Investing Is the Single Best Strategy for New Investors
Tech and AI stocks get most of the attention. But dividend stocks have a history of delivering returns and limiting risk.
Overview
If someone came to you and said they had $1,000 to invest and wanted your help in deciding where to put it, what would you tell them?
Based on recent market returns, your inclination might be to say a tech exchange-traded fund (ETF), such as the Vanguard Information Technology ETF (NYSEMKT: VGT). Since they're just starting out, you might suggest more of a foundational piece, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO).
Details
I think the latter choice is certainly defensible. You want to start your portfolio with something that's broadly diversified, ultra-low cost, and can be held for decades or more. The tech ETF probably isn't a good choice for a starter portfolio (at least as the first fund to own). It's far too focused on a riskier single sector to be the point you want to build from.
Source
Originally published at www.fool.com.