Investing in dividend stocks is another one of my side income that I haven’t talked about yet. The reason why I love doing it is because dividend stocks can provide you some decent monthly income if you know what you’re doing and what to invest in. There are ones that pay you quarterly and annually but the ones that I ONLY invest in are the monthly dividend stocks because they provide faster return on your investments. This type of investments is for long-term growth so don’t go in and expect instant payout because it doesn’t work like that. To get the best results out of anything you need to have the patience to experiment and stick with it.
Dividend stocks can be beneficial to you in today’s market that is so volatile because they provide you monthly incomes to buffer out the lost value of your shares. Stocks are going to rise and fall; that’s expected to happen, it’s how you manage to pick the RIGHT company that’s been proving to provide consistent dividends throughout the years. Before investing in anything, the most important thing is to research, research and research. Especially when investing in dividend stocks; look at the company’s history dating back 5 or more years and see if they’ve been paying consistently. Look at their payout rate, has it been increasing or decreasing throughout those 5 years? or even been cut? If this is the case, then that company might be heading for financial trouble.
Careful consideration is required when investing in any type of investments. Dividend stocks are generally more stable because they provide what everybody wants, even in a troubled economy like today. They invest in things such as water, food, gas, and every day personal hygiene products. As a result, these companies are generally more stable because people keeps buying these products, even in hard times. Know yourself and do research before entering the stocks arena and never take other’s recommendations but do your own due diligence.
:::: This article was recently featured as one of the Fabulous Personal Finance Articles from Around the Globe Edition #6
The best advice for investors: do you research. You nailed that one. Keep up the good work.
Great post Aaron. I know nothing about dividend stocks, so it was really interesting to me. 🙂
Dividend stocks can be a great investment; good job pointing out the importance of doing your research before actually buying the stock. 🙂
Hey Aaron. Congrats on joining the Yakezie challenge and being on team 6! I hope to hear from you soon.
If you’re a fan of dividend payers, and like the monthly returns, you should check out some of the pipeline stocks up here in Canada eh 😉
Are you in any of those stocks? how’s it working out for you? I love monthly divs, if only I have enough to invest in the amount that I would like, I’d be happy right now hehe
Dividend stocks are primarily the only stocks I buy. Even if the payout isn’t big, I like knowing the money is working for me even in a down market. Good article.
Exactly, It’s a lot better than letting it sit in a savings account you know.
Before you start throwing money at the stock market you need to do your homework. There are many questions that you need the answers to first. Such as: What are your investment goals? What is your risk tolerance? How soon do you need quick access to your money?
Many companies pay dividends quarterly. They will announce when the dividend will be paid. The Board of Directors has to approve each dividend. You can also go to Yahoo Finance and click on Historical Prices and then Dividends
Investing in dividend stocks is main important fact that no one have much knowledge about the investing in the stock market .Then how any person investing on that.