Dividend Stocks

The stock market has been a very bumpy ride for most investors, so much so that many of them are sitting on the sidelines. it’s a shame that they are doing it since there are other ways to making money than buying low and selling high. Dividend stocks are just another way to make money even when the stock market isn’t doing anything.

There are hundreds of companies that are traded on Wall Street that offer high dividend paying stocks for investors to take advantage of. What are dividends? Dividends are a way for a company to share the profit of the company with it’s shareholders. Many times a company has grown so much that they don’t need to put so much into research and development, so they will pass a portion of it to it’s shareholders on a quarterly basis (four times a year).

in doing so, an investor can make money even if the company’s stock price doesn’t change. Let’s say you buy shares in company XYZ for $100 per share and the company offers a 10% dividend. Which means that the company will give it shareholders $10 a year for each share you own. So four times a year you will receive $2.50 every three months for each share. After one year of owning the shares, your actual price per share is $90. If the price hasn’t moved over the same period, you are still up 10% on your investment. How could you go wrong with that? So where can you find stocks that pay dividends? When you do your research on a particular company, you will find the information in their chart overview.

There are also many different ETF’s that are built around this concept, but why pay a fee for something you can do yourself. Typically you can also do better than the ETF’s since you are able to get in and out easier than the big boys.

Be aware though that Washington and the present Administration is looking to raise capitol gains taxes which will include dividend payouts. Of course if it’s your IRA retirement account, it won’t affect you. Look into it for yourself to see if dividend stocks are right for you. it’s just another way to increase your profits. Espaecially when the stability of the markets are highly in question.

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