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Dividend payers work great for long term buy and hold/reinvest the dividends. Read the dividend investing articles on TMF.

Drip investing is a great low cost way to go as DesertDave points out.
It does involve a little more effort than working through a broker and you will have to keep track of each investment yourself.

I'm too lazy for that so I have all mine at Fidelity. I usually buy once per stock(single commision) and then reinvest the dividends. Fidelity has a no cost reinvestment program on almost all stocks; either from the stock or their own psuedo Drip program. I only know 1 stock that does not participate. The advantage is one spot tracking of all your stocks, monthly and year end consolidated statements. I don't know what other brokers offer but are probably comparable.

Many of these investments do have good capital appreciation also since dividend payers seem to have come back in favor.

I buy fairly high yield stocks, reits, royalty trusts(including CanRoys),and MLP's with the intent to live on the income and preserve the principal when my wife finally retires.

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