Dividend Investing Helps You Make Money Without Selling Stocks
Dividend paying stocks are great to have especially if you are senior. Dividend investing will help you gain some income without selling your stock. With a dividend paying stock, you are able to get money without having to sell your stock. What is a dividend? A dividend is part of a company’s earnings that goes to the shareholder. For example, if you owned 1000 shares of XYZ Company and they were paying $2.00 dividend, you would receive 2.00 for every share you own. In this case, the shareholder would receive $2000. Now this is put in the simplest of terms to understanding a dividend; however their few more key points that should be understood about a dividend. You can read about the various dates that really allow you to reap the benefit of owning dividend-paying stock.
When dividend investing, you want to own stocks that steadily increases their dividend over time. Therefore, it is important that a company’s profits are growing and the balance sheet proves it is in good financial condition. When you find a dividend yield that is 4-6 percent, along with other factors mentioned, you may want to put some money into the dividend paying stock. This is dividend investing at its best.
Dividend investing can payoff in a big way over time. You must take the time and sift through some of the stocks out there. I thought it would interesting to show you can also make money in the stock market without making a sell. You have to be patient when dividend investing.