How difficult is it to find a safe high dividend stock in 2009?

The Wall St. Journal recently reported that, in 2009, S&P 500 companies' dividend reductions and suspensions are nearly equal to dividend increases, (60 increases vs. 51 reductions/suspensions).

Compare this to 2007, when there were 129 dividend increases vs. only 2 dividend cuts/suspensions, and you can see why income investors in 2009 face big challenges finding safe dividends, let alone high yield dividends.

Indeed, 8 of the Dow 30 blue chip stocks have cut their dividends in the past year, and even the revered S&P "Dividend Aristocrats" group has seen an unprecedented rise in dividend cuts, and an historic lack of increases. The 2009 Dividend Aristocrats group has had 5 cuts and 32 unchanged dividend payouts, vs. no decreases from 2003-2008. In 2006-2007, all 52 stocks in this group increased their dividends, and in 2008 their were 41 dividend increases and 11 unchanged.

So, where can you go to find a dependable dividend yield? Many value investors start their search with the Dividend Aristocrats, which features companies with 25 consecutive years of increased dividend payouts.

Intuitively, it's logical to assume that companies that can increase their dividends for 25 years or more must have strong business models, with steady cash flow, in order for them to keep paying shareholders in this fashion.

However, as noted above, circumstances can change dramatically, so, investors hunting for safe high yields should look closely at the most recent performance of stocks in this group.

Why is it that we live in such a rich country, yet most people are not rich?

At school we are not taught a financial education, or even how to manage cash, we were taught how to work for money but not how to make money work for us.

Also at school we were taught to memorize. When doing an exam you would study for a bit and normally memorize all your notes the night before. If you had to sit that exam a year later you would probably fail because you would've forgotten the information, so it's not really learning is it? Memorizing, and putting into practice are two different things.

For most people, they're also afraid to step out of their comfort zone to try new approaches or strategies to get what they really want in life and end up sacrificing their time and money to a cause they have no interest in. Are you dedicated enough to step out of your comfort zone and make a difference in your life?

Another reason why people won't step out of their comfort zone and have a go in life is their focus. They're not focusing on their destination, for example as Jamie McIntyre explains it, "When driving, do you focus on your destination and where you're heading or do you focus on the bugs on the windscreen?" Those bugs are related to fear and pain. When you mention investing to the un-educated or those without the right mindset, they have the fear and pain of losing money. For most people the need to avoid pain is greater than the need to gain pleasure.

Another point of mention is mindset. In particular, the mindset of the majority of people around money. Most people delude themselves when it comes to money. They think money will solve all their problems, hence the reason why many people buy lotto tickets. But look what happens to the majority of those who actually win lotto, most are worse off three to seven years later. They never had the mindset to make money work for them. They had more money than their personal development. You only have to look in some trashy celebrity magazines and you'll more than likely find a movie star, rock star or sports star stuffing up their life because they've had more money than their personal development. Mindset is 80% of what it takes to be financially independent, 20% is strategies but without the mindset you'll never implement and fully take advantage of the correct wealth building strategies.