All dividend-paying stocks are not equal. Some may be very high risk; some will putter along, while others may be the salvation for those desperate for income. Why consider them? How do you pick the right ones?

Since the 2008 bank bailouts, even with the recent increases, interest rates have been at historically low levels. Many who thought they had bulletproof retirement plans learned a bitter lesson. The interest rates they anticipated from CDs and ultra-safe bonds no longer exist. Retirement plans for all generations had to be revised in light of today’s reality.

I contacted good friend and former colleague Lee Campbell who is now with Investors Alley. They publish a number of advisories specializing in dividend paying stocks.

Lee directed me to their in-house expert, Tim Plaehn. Tim focuses exclusively in research on dividend payers, and how to properly utilize them for generating passive income for several research services for Investors Alley. Tim, a former stockbroker and Certified Financial Planner, has kindly agreed to share some of his strategies with our readers.

DENNIS: Tim, on behalf of our readers, thanks for making time for our benefit.

I believe part of the reason the stock market is at an all time high is investors of all ages are searching for yield. How do you go about searching for safe, decent dividend paying stocks in today’s environment?

TIM: Dennis, thanks for inviting me. I agree with your assessment about why the market is setting records. A lot of our readers are worried about how they’ll cover their bills in retirement.

Currently the market is attempting to price in many of the anticipated regulatory and tax reforms that are now being discussed. We don’t know what the future will bring. Investors, particularly those focused on retirement, will continue buying quality dividend paying stocks. Many readers complain they feel forced to invest in the market; they have no choice.

DENNIS: Tim, I believe there are a couple kinds of dividend opportunities. The first is what I call solid, Fortune 500 companies that have long histories of regularly paying and raising their dividends. The second is the type of companies like Real Estate Investment Trusts that have special tax consideration and must pay out a large percentage of their income in dividends each year to maintain that tax advantage.