If you want targeted traffic, then create several web pages, each focusing on just one or two high ranking keywords. The pages should contain high quality and relevant content. Such pages are liked by the search engines and your web pages will rank much higher in the SERP for their keywords because they contain targeted content.
You will thus have many high ranking web pages for different high-ranking keywords instead of having a single page containing plenty of keywords.
If you are selling products and services, then create a unique page for each product and service with its own specific keywords. In this way, you can create targeted traffic for every product and service separately.
This means more targeted traffic to your website, each traffic coming from a unique set of keywords, and possibly more avenues of online income. The other advantage of this method is that, you will have more high-ranking pages in the search engines for the given keywords.

Thanks for the tip . I always try and keep my keywords relevant, and try not to flood my website with them. (Sometimes you have to limit keywords in the meta tags!)

This is true. Why should you have a keyword that has non-high ranking keywords on your site? It couldn’t do any good at all and is just wasting your time.

What are your favorite sites for keywords? I was using nichebot and keyworddiscovery. I'm sure there are other sites out there now. Any suggestions?

My favorite sites for keywords is google keywords tool................its a best site 4 keywords...try this....

I think it's also important to give consideration to conversion of those keywords over the long haul. If I have a client ranked high for specific keywords but the analytics dont support any conversion then we wont be doing business for long. Now Industrial companies have an even bigger problem because of the technical information used to describe their products. Check out our site www.industrialwebpros.com

I’m using Google Insights to search for keywords for my site. It does help on finding good keyword that many are searching.