What is a conservative investing strategy?

A conservative investing strategy focuses on preserving capital while generating income through . An investor who leans to the conservative side of the spectrum may be less concerned with growth than they are with maintaining the status quo as far as interest and dividend income are concerned.

Does conservative investing protect against inflation?

Although a conservative investing strategy may protect against inflation, it may not earn significant returns over time when compared to more aggressive strategies. Investors are often encouraged to turn to conservative investing as they near retirement age regardless of individual risk tolerance.

Are conservative investments risk-free?

That doesn’t mean conservative investments are entirely risk-free. There may still be some risk involved, depending on the investments you choose. And it’s also important to remember that investing conservatively could make it more difficult to maintain your purchasing power if inflation outpaces returns.

Are high-dividend stocks considered conservative investments?

High-dividend stocks are also considered conservative investments. Conservative investing is an investment approach that focuses more on protecting capital and, in some cases, producing income. This is in contrast to aggressive investing, which aims to earn the highest returns even if that carries a higher level of risk.