Not all stocks are the same. The typical assumption is that you will buy a number of stocks, and that investment is static – you wait until the prices are better and then sell. Some stocks – dividend stocks – will return money more regularly in the form of dividends. By their nature, these are more consistent investments, but these companies are typically more sensitive to changes in the market. If you are interested in dividend stocks, try focusing on finding a dividend stock in the following industries.
Research and Development
One of the most expansive companies is 3M – Minnesota Mining and Manufacturing. This company covers a wide array of products, including healthcare and industrial products. However, the company has a commitment to R&D, and they always focus on being at the forefront of changing technology. This sets 3M up for more consistent returns, as well as stability in the marketplace.
Research and development drive many markets forward in the modern age, and supporting the advancement of technology is a very worthwhile investment.
Real Estate Investment Trusts are among the most popular investments for good reason. They are consistent and easy to understand. Considering the stability of the housing market, even though the struggles of the Covid-19 pandemic, these can be the best long-term investments for retirement funds.
When investing in REIT’s it’s important to consider the diversification of the REIT’s portfolio. Consider not only the form of real estate – Industrial vs office for example – but also the countries the REIT centers itself around.
Utilities may be one of the most regulated investments to make, but this is more a good thing than bad. On the one hand, utility providers often have what are essentially government-granted monopolies – on the other hand, they are often tightly regulated in order to guarantee customer access and support to all. This is great for those living in the area, but less good for growth and development, which are far more important to capitalists.
But it’s important to know that these tight regulations provide a great deal of stability to utilities, providing far more consistent return on investment, even if that return is typically lower.