In these times of low interest rates on savings accounts and bonds it is not really surprising that many investors have flocked towards dividend-paying shares. The attractions of a higher income return on their investments and the possibility of a growing income stream to boot are easy to understand.
That said, dividend investing is not as simple as buying shares with the highest dividend yields and hoping for the best. Like other forms of investing it comes with its dangers and pitfalls.
With the changes to pension saving rules and increases to the annual stocks-and-shares individual savings account (Isa) allowance, many investors are looking to dividend-paying shares to give them an income to live on for the rest of their lives. This makes the choice of dividend-paying shares for your portfolio an important one.