Dont Chase the Highest Dividend
Do Understand the Company Youre Investing In
Do Study a Companys Cash Flow Statement
Thats where investing in high-quality stocks that provide dividends come in. There are two ways you can make money on a stock: capital appreciation and dividend yield. Capital appreciation is the increase in the share price and the dividend yield is what the company elects to pay out annually. For example, if a companys share price increased five percent in 2015 and paid an annual dividend of five percent, the annualized return would be 10%. Adding high-quality dividend stocks to your retirement portfolio is the best way to ensure consistent growth.
I have learnt my share of lessons by making mistakes in dividend investing, I found a good article describing the tips on how to invest in dividend stocks.
Do Understand the Company Youre Investing In
Do Study a Companys Cash Flow Statement
Thats where investing in high-quality stocks that provide dividends come in. There are two ways you can make money on a stock: capital appreciation and dividend yield. Capital appreciation is the increase in the share price and the dividend yield is what the company elects to pay out annually. For example, if a companys share price increased five percent in 2015 and paid an annual dividend of five percent, the annualized return would be 10%. Adding high-quality dividend stocks to your retirement portfolio is the best way to ensure consistent growth.
I have learnt my share of lessons by making mistakes in dividend investing, I found a good article describing the tips on how to invest in dividend stocks.
How to start investing in dividend stocks
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