In today's market, one of the most overlooked areas of investing is the purchase of so called "income stocks," or those stocks whose income implications for your portfolio trump the lower annual return that they may entail or the investment into companies that may not seem like the "hot stocks" on the market. Indeed, investing in income stocks is a strategy that was popular in the last generation, when returns on the open market were lower per year and many people were more concerned about protecting their principal than about getting rich quickly in the stock market. Despite this shift in the general focus of the market players, there are still people who make a good deal of money using the income stock investment strategy.

 Of course, the income that is derived from a stock comes primarily in the form of a dividend. While dividends are becoming a harder and harder thing to find for many companies, as they are slowly being phased out in many firms in favor of reinvestment of profits or other uses as opposed to the profits being given back to the consumer, the average investor can still find companies that offer dividends to their shareholders, many of which offer enough dividends to make them a great addition to a portfolio.

 The typical consumer, however, has very little knowledge today about what makes a good company to invest in for the purpose of reaping dividends. In reality, the information that one needs to pay attention to is usually on the financial information page of a company's profile on an internet investment information site. The biggest key to selecting a good dividend stock is the dividend yield - which is the percentage of dividends paid out as compared to the price of the stock. This means that a company who has a low price but a high dividend payout will have a higher dividend yield, which is great for the investor looking to dive into the market for the purpose of buying cheap stock with a high income prospect.

To this end, companies that have high dividend yields come in two flavors - companies that have been abnormally profitable and want to give something back to the investor in the short term and those whose dividends and profits have been consistent in the long term. Many well established companies that are profitable will have a long record of providing dividends to their investors. Be wary of companies with a high yield but a record of paying low or no dividends in previous investment quarters.

 Choosing companies in stable industries with growth potential can insure that the dividends will be paid out for the long term rather than the short term. Many companies who have strong dividend payment records will be those that can weather the storm of an economic downturn without affecting the dividend payout too severely and will likely be in business when the economy turns around. Choosing stable companies whose business history allows them to continue operating into the future can allow you to reap the income from dividends for a long time to come.

 Ultimately, choosing a company for an income investment strategy where dividends drive the portfolio growth can be a safe way to experience gains in your investments without putting your money at risk. Most companies who pay high dividends are safe, established companies that will allow you to gain income and keep your investment safe for years to come. While it may not be the best way to get rich on the stock market, many people in the past and present have made a great deal of money through investing in high dividend stocks.