about dividend investing

what is dividend

Dividend is that, if you hold a stock of a company that pays you dividend, you can effortlessly get money periodically. It is usually paid quarterly but some company pays you dividend each month. The yield of dividend is depended on the company, its price is decided by the executives. Mostly the yields of dividends are ranging from 1% to 3% of the stock price.

dividend investing

Dividend investing is literally trying to get an income by buying stocks that pays you dividend. It is different from usual stock trades, that says you dont need to keep watching charts and prices of stocks everyday, you also dont need to consume a lot of time to research stocks and companies. Of course it is necessary to research and understand what the company is and what they trying to do in the future to achieve high return, but you dont need to study about stocks everyday. You won't distracted by notifications of the stock price down from your phone in the morning.

but the truth is?

Dividend investing has some disadvantages, which is, you have to wait for a very long time to get a relatively good return from dividend investing, like +30 years. The results of dividend investing is studied by many investers. I personally read this book, highly recommended.

The Future for Investors: Why the Tried and the True Triumph Over the Bold and the New

As some reseach shows, the effectiveness of dividend investing is based on the facts that human population is going to increase and the price of money is going to increase in the future (not in the short term but really long term). So basically if you buy a stock of healthy company and hold it decades, you will be able to increase your assets easily in terms of passiveness on condition that you choose healthy company that suvirve decades of time though.

tactics

so based on these facts, I recommend that you buy healthy stocks that can keep alive for a long time. Keeping alive for a long time means a lot though. When you select what stocks are healty or not, it is important to consider the future of them in an intuitive way. It is difficult to write so i gave up writing this.

information

There are lots of information about divedend investing on the internet. Some are good, other are garbage, so be careful the quality of the information.

Seeking Alpha

ETF.com

YouTube

Joseph Carlson

Andrei Jikh

Kenny Robinson

Rian Scribner

As you can see, I love learning on YouTube.