According to finance.yahoo.com, "Marcin says investors should buy stocks of companies they believe in first and foremost, with the yield coming second. Paradoxically, stocks with high yields can be the least safe on the market. When you see a name kicking off 5 or 6% while the rest of the blue chips are yielding half that, it's a sign that institutional investors are skeptical of both the company and its ability to pay the listed dividend."
When developing a portfolio, you definitely want stock that is paying dividends. The question is how much. In general, it depends on your investing style and your needs. However, having a portfolio with 40-60% of dividend paying stocks of solid companies is a great start.
Asset allocation and diversification is also extremely important. For example, bonds and real estate might add some great value to your portfolio.
This post was reposted from http://finlit.biz/retirement-2/can-you-develop-a-portfolio-with-little-experience/, originally written on February 11th, 2013.
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