How can you invest in high dividend stocks without getting burnt? 

Let's admit it, who wouldn't want a stock that pays you high dividends every year (or quarter)?

It sounds really sexy but reality is not always that pretty. 

I love investments that pay me a dividend and I cannot lie. What's not to love, when I can shake leg at home and still get paid regularly? 

But whenever you invest in such, you have to first and foremost make sure that your underlying capital is protected.

And don't just trust analyst reports. You need to do your own due diligence and form your own opinion, for no one is going to take responsibility for your money if you encounter a loss. I cannot stress this enough. I'll talk more about how you can do this towards the end of this post, but first, let's look at an example to understand what...