If you are looking to build wealth or generate income then dividend investing is a great strategy for you.
Imagine having so much money that you don’t know what to do with it.
Having too much money probably isn’t a concern for you, but a lot of the major companies you recognize actually do have too much.
They actually have so much money, that they would like to give you some.
Let’s dive into dividend investing, and learn how you can earn some of this money!
What is Dividend Investing?
Dividend investing is the process of acquiring stocks that pay a dividend. Dividends are authorized payments that are paid out to the shareholders from the company’s earnings.
Basically, a company will pay you money if you own their stock.
Many people buy dividend paying stocks in order to build a stable cash flowing portfolio.
Why do companies pay dividends?
As explained in the book Too Much Money, essentially, these companies literally have too much money and they can’t spend it on themselves. If they were to invest it in themselves, they simply wouldn’t make enough of a return on the available cash.
Because of this, they decide to redistribute that cash with their shareholders.
Shareholders are eager to get their hands on this.
When do you receive dividends?
Dividends are typically paid out quarterly, but sometimes companies will schedule special dates they deem appropriate for dividends to be paid out.
How to find income stocks?
There is an insane amount of information on the internet today. This is both a good and bad thing because some information is great, but other information is very misleading.
I highly recommend grabbing the book Too Much Money. This is a short read that will provide you with all the information you need to begin your investing journey. This book is extremely undervalued and will pay for itself.
When should you start?
The best time to start investing is now!
Your future self will thank you for doing so.