Dividends - Stock Investing Tips #1

For those of you who are new to investing in stocks, we will inform you of dividends! Dividends are usually a cash payment per share of stock you own. Dividends are provided quarterly or annually based on the company’s performance. For example, let us say you own 500 shares of AT&T stock and the company pays $0.49 quarterly per share as a dividend, then you would receive $245 total. Add that up for the whole year and you make $980! Dividends are a great opportunity to earn passive income. Many of the older investors prefer high yielding dividend stocks, but we advise the younger generation to start investing now and rack up some gains for the future. Make sure you do thorough analysis of dividend paying companies.

Some questions you should ask are:

Will this company exist indefinitely?
Has the company been consistent on payment of dividends?
Has the company been steadily increasing dividend payments?
Did the company pay dividends during the most recent financial crash?

So now, who is ready to milk some cows for cash? Remember, these are just some questions every investor should ask, always research and do your own homework!

Think about it like this: Own dividend paying stocks and get paid to sit your bum!