I refer to the article published today 5/9/2011 on Straits Times “Seeking Shelter In Dividend Rich Stocks” by Jonathan Kwok. I think it is a good reminder to people that dividend paying stocks are still far safer than non dividend paying stocks. The article lists real estate trusts, business trusts as some of the safer stocks which people are investing in now given the market turmoil. There are however a few items which I like to comment on. High Yields, High Risk! The article states that there are “often greater risks associated with higher returns”, which is really important. Investing in dividend stocks does not mean automatically going for stocks which have the highest dividend yield. Remember that returns are usually also a good proxy for risks, hence the higher the returns the higher the risk generally. It’s the reason why AAA grade bonds command lower interest rates than high ......