As 2012 peters out, trading activity is slow and market volatility low. Yet this state of relative calm hasn't quieted the anxious chatter about hyper-fast trading by automated systems aimed at capturing tiny price blips in stocks, over fractions of a second.

This is the industry landscape facing Larry Leibowitz, chief operating officer of NYSE Euronext Inc. (NYX), the parent of the New York Stock Exchange and other trading venues. Speaking with us at Minyanville.com's Festivus charity event on Dec. 7, Leibowitz blamed what he called the market's case of the volume "blahs" on general investor hesitancy in the face of open questions on taxes, government budgets and regulation. The bulge in volumes experience during and right after the 2008 financial crisis has been entirely unwound, with average daily trading volume in U.S. stocks now around 2007 levels.

Some unknowable portion of these volume declines is related to individual investors steadily pulling cash from actively managed equity funds --withdrawals only partially offset by inflows into exchange-traded index funds. The public remains wary of stocks after the indexes were twice cut in half between 2000 and 2009, and fears have grown among small investors about computer-propelled trading on privileged access to order flow.

Leibowitz suggested that clearer reporting on the activities of high-frequency traders is necessary to help counter some of the worry about the business and rebuild investor confidence in the public equity markets.

"The reality is, technology is here to stay, and has been a huge windfall for end investors, whether retail or institutional" through lower trading costs and faster systems, he said. "The real question is: How do we regulate and surveil it in a way that gives people confidence that they have a chance?"

With dividend tax hikes looming, special dividends being announced, and government security yields at all time lows, it's easy to forget the basics. Specifically, how can you create a portfolio of dividend paying stocks that separates Blue Chip yield from the value traps.

In this edition of Investing 101, Barbara Marcin, portfolio manager of the four-star rated Gabelli Dividend Growth Fund (GABBX) walks us through the basics of building a portfolio of stocks that spins off some income to patient investors.

Tip #1: Be Patient and "Layer" into Positions

Dividend stocks aren't about catching every rally. The idea is to take the long-view and create a portfolio built to last. Marcin suggests investors with a 3-year horizon slowly build positions rather than dive in all at once. "Put in a third now, a third in three months, and a third after that," she suggests in the attached video.

In a volatile environment, having a set schedule like this keeps investors from getting unnerved and making impulsive decisions.

Tip #2: Look at the Company Then the Dividend

Marcin says investors should buy stocks of companies they believe in first and foremost, with the yield coming second. Paradoxically, stocks with high yields can be the least safe on the market. When you see a name kicking off 5 or 6% while the rest of the blue chips are yielding half that, it's a sign that institutional investors are skeptical of both the company and its ability to pay the listed dividend.

If 2 or 3% seems low to you, Marcin begs to differ. Dividends are "the highest current return available compared to anything 'safe'... Treasuires, CDs, anything."