There may not be many sure things in this world of ours, but that doesn’t mean we can’t take advantage of some of the more advantageous opportunities we are given.
1 of those opportunities is often overlooked, yet it can get you get paid no matter what happens.
The secret is simpler than you might think…
The first time people hear about dividend stocks they are often in a state of wonder.
‘Can I really get paid just for owning a stock, whether it rises or falls?’
Absolutely.
That’s the beauty of dividends.
For those who don’t know exactly what dividend stocks are, they are the stocks in the stock market that payout a certain amount of money every quarter or year.
More technically, a dividend is a portion of the company’s earnings distributed to a class of shareholders of the stock.
That payout to shareholders, which is normally paid in cash (but can also be stock or property), is called the dividend yield.
‘What should I be looking for in a dividend stock?’
Now, there is a lot of information to look at when first trying to understand they best route to go for the best dividends, but I’ll try to cover the most important stuff now.
First of all, seek out the stock with the highest dividend yield. This will often be quoted as the dollar amount received per each share owned, but can also be quoted as the percentage of the current market price of the stock.
For the most part, you want to find high dividend yields.
The next thing you need to know is that dividends are often paid by the large, stable companies to make up for the lack of movement in share prices.
The high-growth companies will normally reinvest all earnings back into the company to stimulate further growth, benefiting shareholders by the stocks rise in price.
HOWEVER, that doesn’t mean that you can’t find a high-growth company paying out solid dividends. When you do so, it’s like getting paid twice to invest!
Although there is much more to consider, I’ll leave you with one of the most important lessons regarding dividends…
Don’t invest in a stock just for the dividend. If a high dividend-paying stock is unhealthy and falling in price, you will still wind up losing money in the net.
Make sure you’re focusing on healthy, strong stocks that payout a solid dividend.
If you want to be able to pick out strong stocks virtually all the time, check your email for an invitation to join the Stock Code Breaker course.
