LEARN STOCK MARKET INVESTING

Stock market investing is a very huge topic to discuss, so today I am going to tell you a very important part of stock market investing that is DIVIDENDS. Many people want to get involved in stock market but don’t know how to start, where to get started? Now I am gonna tell you how you can earn from high dividend stocks without investing all of your savings. Smart investing can be safe and can turn your money into more money and advancing your financial future.

First of all, what are stocks?

So its very simple, stocks are certificates that say you own a portion of a company.

Now high dividend stocks provide a guaranteed income source for investors, no matter when you started investing. Basically, what companies do is they pay out to their shareholders which is known as dividends. These payments generally come on quarterly basis.

Many of the best high dividend opportunities come from the names you hear everyday. These include Coca Cola, AT&T, Target, who are known for offering some of the most excellent yields above 5%.

Suitable for:-

If you are interested in investing and stock market but are afraid of risks and slightly terrified of losing money than dividend stocks are for you. It’s a great way to start your stock market investing journey and enjoy the feeling of receiving payouts while making some real income.

How does it pay?

Let’s say you own 100 shares of any company for example AT&T at $30 per share. At their 5% dividend rate, each quarterly payout would earn you $150. That figure is calculated by taking 5% of a single $30 share($1.50) and multiplying it by your 100 shares.

You need to invest a significant amount of money so that your dividend payouts can also be significant. If you have money issue and can’t invest this much amount of money then use the strategy of continuous investment also known as day trading, until your portfolio is large enough.

How to get started?

First you must learn about stock market, learn every little bit of it until you have a good knowledge of investing. You can practise investing with the Investopedia simulator, where you can buy and sell stocks with fake money. From this you will gain experience and will be able to learn stock market investing more easily.

Follow famous Instagram business pages which gives knowledge about stock market investing and various modes of investing. You can also watch YouTube videos, see podcast, ebooks, books and learn from prominent investors such as Warren Buffett.

Once you develop your knowledge and feel ready to invest search and sign up for a low fee brokerage like Questrade. And remember one thing that any investing in the stock market comes with inherent risks. Do your research and be patient, invest when you feel that you are ready.

PROS:-

It is far less risky then other stocks as it guarantees of atleast some payout to counteract stock market fluctuations.

CONS:-

Takes lot of time and money to become wealthy from dividends.

Limited range of corporations that pays the dividend.