While chasing high growth stocks over the last 15 years was exciting (at least while their stock prices were going higher), the market crash that seems to always ensue is finally taking its toll.

Many individual investors continue to keep their money on the sidelines following the bear market of 2008 when the S&P 500 plunged nearly 41%. In past years, these investors would have kicked themselves for missing the subsequent 44% rally that followed in 2009. However, these investors have few regrets after being burned so frequently by chasing these rallies in the past.

Gone are the days when these investors would accept Wall Street’s creative wisdom in order to justify inflated stock prices. Buying a hot growth stock at the right time could make you a millionaire regardless of how expensive the stock may appear. While a few made it rich, many more saw their stock portfolio’s crushed by chasing these elusive returns.

As investors survey the financial markets in 2010, a new investment style is beginning to look more attractive – dividend investing. Of course, it’s not a new investment strategy, but rather a tried-and-true investing strategy followed by financial icons from Benjamin Graham to Warren Buffet.

Investing in solid companies that distribute a portion of their earnings back to their shareholders used to be considered old fashion. Receiving a cash dividend each quarter was considered a nice-to-have, but certainly not a requirement for our investment strategy. After all, the real money would be made as management reinvested that money back into the business and the stock price soared as a result.

Now as investors view the financial landscape in 2010, a cash dividend is becoming almost a requirement. Investors want to invest their money in a company that will not only grow, but will also return a portion of their profits back to their shareholders. As the firm’s revenue grows, so will the stock price and just as importantly so will their dividend payments.

Gone are the days when investors are simply looking throw money at the latest growth story and hope the stock price doubles. Investors are now looking for more realistic returns and they are now accepting the fact that dividends will account for a significant portion of their total returns.

As companies recognize the increasing trend towards dividend investing, we are likely to see more companies initiate dividend payments. And those that currently offer dividends will seek to increase their dividends. It will become increasingly unpopular to continue to reinvest your earnings back into the company without providing a dividend payment that returns a portion of those earnings back to your investors.

Currently, 29 out of the 30 stocks in the Dow Jones industrial index offer a dividend payment of some type. However, it’s only a matter of time before the one holdout, Cisco Systems (CSCO: 20.44 -0.82%), begins offering a dividend. They can certainly afford to with $35 billion in cash sitting on their balance sheet.

Strong companies that offer solid dividend yields like Pfizer (PFE: 16.88 +0.66%), McDonald’s (MCD: 74.91 +0.73%), and Coca Cola (KO: 58.3405 +0.09%) will become the investments of choice. These blue-chip stocks may not double overnight, but they offer solid earnings growth and a commitment to pay dividends back to their shareholders.

The increasing optimism is particularly evident in the real estate markets. The recovery in the real estate markets is now being heralded by financial pundits everywhere. On June 16th, Mad Money host Jim Cramer boldly announced that the housing market had bottomed.

The numbers seem to be supporting these bullish claims as well.

• July existing home sales increased 7.2% and have now risen four months in a row.

• Home prices increased 3% in the second quarter, marking the first increase in three years according to the Standard & Poor’s/Case Shiller’s national home price index.

• Single family new housing starts increased 1.7% in July.

• New home sales increased 9.6% in July.

• Inventory for new homes now stands at 7.5 months, the lowest level in 16 years.

• The National Association of Realtors Pending Home Sales Index rose 3.6% during July marking the fifth straight month of increases.

• The NAR’s Housing Affordability Index continues to show signs of improvement.

• Mortgage rates continue to remain at abnormally low levels and currently average only 5.3% for a 30-year fixed loan.

In addition to these “green shoots” within the housing markets, the government’s $8,000 first-time homebuyer’s credit remains in effect until November 30, 2009.

So how can investors capitalize on the recovery in the real estate markets?

Buy A House
If the real estate markets have indeed hit bottom, now would be a perfect time to buy a new home. This is a particularly attractive option to first-time homebuyers who don’t have to worry about selling their existing home. They also have the benefit of low mortgage rates and the $8,000 tax credit.

The glut of foreclosure properties on the market today also presents some attractive opportunities to pick up rental properties.

However, not everyone wants to become a landlord or is prepared to sink a large amount of money into a home. Never fear, here are five additional ways for investors to capitalize on the housing market recovery.

Real Estate ETF’s
One of the simplest ways to invest in real estate is to buy a real estate ETF like ICF (ICF: 62.22 +0.47%) or IYR (IYR: 52.97 +0.26%).

Home Builder Stocks
You could capitalize on the improvement in new home construction by investing in the companies building the homes like Toll Brothers (TOL: 18.43 +0.99%), KB Homes (KBH: 11.67 +0.43%), DR Horton (DHI: 11.07 +0.82%), Lennar (LEN: 14.51 -0.27%) or Brookfield Homes (BHS: 7.45 +0.27%).

Home Improvement Retailers
A good way to play both the improvement in new home construction and the increase in existing home sales is to buy home improvement retail stocks. Increasing numbers of home builders, home buyers and home sellers are all positive developments for Home Depot (HD: 29.68 +0.92%) and Lowes (LOW: 21.575 +0.02%).

Real Estate Mutual Funds
Another easy way to invest in real estate, is to buy shares of a real estate mutual fund. There are currently over 200 real estate mutual funds available.

Banking Stocks
Increasing economic stability and rising home prices should benefit large banking stocks like Bank of America (BAC: 13.59 +0.67%), JP Morgan (JPM: 39.87 -0.57%) and Citigroup (C: 3.93 +0.51%) with their broad real estate exposure.

Of course there still remains a great deal of uncertain regarding a recovery in the real estate markets as well as the broader economy. No one knows for sure what “shape” this recovery will take. However, given the severity of the downturn in the housing markets over the last few years, we are likely to see at least some recovery in the real estate markets over the next few months.

However, it appears that the Obama administration is beginning to recognize that their healthcare reform plan is too aggressive. Already there are indications coming out of the White House that there is willingness to scale back their healthcare initiatives in the face of strong popular resistance and worries about the overwhelming costs of public healthcare. 

This positive news has lifted healthcare stocks recently, with the healthcare sector of the S&P 500 gaining 5.3% since June 30th. However, the big move in healthcare stocks appears to still be ahead of us and we have identified five stocks that should be compelling to investors. 

Abbott Laboratories (ABT: 51.4195 +0.64%)
Despite strong growth prospects and a decent dividend yield, this healthcare stock is currently trading near its 52-week low. 

2010 Revenue Growth: 7.7%
P/E (ttm): 13.3
Dividend Yield: 3.6% 

Gilead Sciences (GILD: 34.23 +0.53%)
This high-growth healthcare stock has seen its stock price rise 12 consecutive years.

2010 Revenue Growth: 14.9%
P/E (ttm): 18.7
Dividend Yield: N/A

Medtronic (MDT: 33.27 +1.71%)
Wall Street’s consensus estimates appear to be too low for this healthcare stock which could provide an opportunity for investors to capitalize on an upside surprise.

2010 Revenue Growth: 5.5%
P/E (ttm): 19.0
Dividend Yield: 2.2%

Eli Lilly (LLY: 35.40 +0.65%)
Two words…dividend yield. The stock offers dividend investors a whopping 6.0% yield.

2010 Revenue Growth: 6.3%
P/E (ttm): N/A
Dividend Yield: 6.0%

Celgene (CELG: 54.96 +1.99%)
Another high-growth healthcare stock that could deliver a 40% return to investors if it returns to its 52-week high.

2010 Revenue Growth: 20.4%
P/E (ttm): 84.3
Dividend Yield: N/A