Part 6/9:
While many financial experts advocate for index funds or ETFs, investing in individual stocks can allow for tailored risk and reward profiles. Notably, stocks that have a consistent history of increasing dividends—including those classified as "dividend aristocrats"—are worth considering. For instance, British American Tobacco has a history of 36 years of dividend growth, yielding approximately £964 from a £10,000 investment at a yield of 9.64%.
However, the volatility of individual stocks should be approached with caution. Companies with high dividend yields might have fluctuating stock prices, indicating a need for thorough research prior to investment.