Investing for Beginners .EU, investing

investingforbeginners.eu An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today.
Laurence J. Peter

Investing in Dividend Stocks

2011 Sep 12

 

Some say that there are ways of investing money in the stock market without really putting much time and effort into it. Investing and earning through dividend stocks is one of these ways. What is a dividend stock in the first place? When you purchase a share of a company, through a stock, you now own part of the company. The company uses this money it gets from its shareholders for investment.  This money makes profit. The profit that is returned to the shareholders is the dividend. 

 

Dividend stocks make investing worthwhile since it provides regular payments to its shareholders. Different companies have different schemes; the dividend may be given quarterly or annually, depending on the company. Dividends are often given as money; however, some provide it in the form of stocks.

 

Investing in value stocks has been said to be earning ‘passive income’ since one does not really actively trade for it to earn money. It is not buying a share of a company and selling the share at another time to make a profit. The investment earns money on its own as long the company one was investing in is making money. One gets a steady return from one’s investment. Some increase their investment by using the money they get to purchase more shares. Hence they also increase their dividend since getting more shares would mean getting a higher return from the dividends.

 

One simply needs to have a broker so one can make an investment in the stock market. It is wise to do some research about the company’s history and how well it pays off its dividends to its shareholders. One should also consider investing in the segment one is familiar with. For example, if one has a background in how telecommunications companies operate, then it may be wise to make an investment in a telecommunications company. 

 

Investing need not always be as daunting as it may seem because of unpredictable market conditions. If one puts investment in reputable companies, one may enjoy the benefits of dividend stocks though prevalent market conditions may not be favorable.

 

It is not true that dividend stocks aren’t risky. There are risky, because dividend stocks are still stocks, but less risky than growth stocks and you can use that advantaged when modeling investment portfolio. It may help to allocate yours investments properly according to prepared investment strategy

 

Read next article: Investment Takes Time

 

Other articles you may like:

The Best Investments for Beginners

Classical and Untraditional Investments

Economy and Stock Market

Bond Investment: Government Bonds and Corporate Bonds

 





Name:
E-mail:
Text
Security Code:
(Use only capital letters and numbers. If you can not see the code, click on the image.)

You are solely responsible for all content you post to the site.
investingforbeginners.eu reserves the right to edit or delete any and all reader comments.



Investing in precious metals: Is it a good idea?Investment History 101Is investment risk high today? Are Derivative Investments Necessary For All Investors?Investing In Stocks Of Employer: Should Your or Not?How Stocks Are Reacting to the News?Are Rich People Investing in Real Estate?Investment Styles of Most Famous InvestorsPractice Is the Only Way to Investment ProHow to Invest if Don’t Know Anything about InvestmentWhen Is The Best Age For Beginning of Investing?Economy and Stock MarketRight Time to Stop InvestingSpending and Investing Balance ExtremesInvestment in Your LifeClassical and Untraditional InvestmentsIs Forex Trading Investing?How to Invest during a Recession?Investing In Stocks Of EmployerThe Best Investments for BeginnersTime Spent for InvestingInvesting in Dividend StocksInvestment Takes TimeBeing Rich is a Lifestyle like InvestingInvesting in Stocks is More ProfitableForestry InvestmentsImprove your Investment Results Together with Investment SkillsAll About Investing

Last searches: investing risk , BRIC , currency , terminal , eurobond , euro , debt , voting , voting right , structured , investing , investment , beginners , stocks