/biz/ - Business & Finance

>>19022555
Oh I bought like 20 shares of XOM just for funsies.. Dividends sound cool, but they're tied to the price of the stock as well right?

So my question is, let's say I'm somebody who just buys say, index funds like FNILX or VOO. And let's pretend those guys return 5% a year for me.

And let's say dividend stocks with good yield (XOM for example) returns 7% annually. Those high yield dividend stocks also have the opportunity go up with the market, which means you would be getting that 7% plus the potential gains.

So my question is what are the risks that come with buying high yield dividend stocks? That sort of guaranteed income sounds very nice. I'm wondering if maybe I should make 10-15% of my portfolio individual blue chip stocks that give good dividends. Any thoughts?