Dividend investing appeals to many investors since it is one of the few forms of pure passive income. An investor who owns shares is entitled to dividends, which are paid out every quarter. The only thing an investor needs to do is buy the stock and keep it long enough to get dividends.
Dividend investing is also appealing since companies typically continue to pay dividends throughout the economic cycle. Dividend investors receive their dividends even if the market is in a downturn and share prices are falling.
Dividend-paying corporations are often large, established companies with consistent cash flows, which adds to the stability. These businesses are typically less volatile than smaller businesses and are hence considered safer investments.
If dividend investing makes you feel stressed, search for the source of your tension within yourself. You don't have to spend a lot of time managing your portfolio once you've chosen the stocks. You aren't purchasing something for a short period of time. If you buy a single stock, your reasons for buying it should still be true in a few months or years.
There is a site that has done all the work for you in researching all the dividend paying companies and the respective yields.
To begin dividend investing, you don't need to be a financial expert. I genuinely believe that anyone who is willing to commit a few hours of their time to it may begin and succeed. Select companies with a low dividend payout ratio and a track record of at least two years. Remember to spread your money across at least 15-20 (if not more) companies. You can't go wrong if you follow a few simple rules.
