Invest in Dividend Stocks

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INVEST IN DIVIDEND STOCKS www.ProfitableInvestingTips.com

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www.profitableinvestingtips.com Invest in Dividend Stocks Invest in dividend stocks for security and a steady income. There are companies that have routinely paid quarterly dividends for as much as a century. If you want to sleep at night invest in dividend stocks. A contrarian might argue that buy investing in a secure stock that you will give up the potential for growth. However, good dividend stocks typically outperform the Standard and Poor’s 500 stock index over a decade. What Are Dividends? A company that makes money oftentimes pays a portion of its profits to shareholders on a quarterly basis. Sometimes this dividend is a onetime payment based on exceptional circumstances. However, when we suggest that you invest in dividend stocks we are talking about companies that send a shareholder a check every fiscal quarter. Dividends from a strong company are a reliable source of cash. They are also proof of the strength of the company and should be considered when doing fundamental analysis of a stock. In some ways dividends are like interest from bonds. A secure company will pay a set dividend that does not change with prevailing interest rates. Thus the price of the stock may go up with lower interest rates and down with higher rates. High Dividends of Consistent Dividends The general reason to invest in dividend stocks is long term, consistent dividends. This is what helps you sleep at night as a stock investor. The higher the dividend the better but if a company is stealing from R&D capital to pay dividends it might just be getting a little too desperate to keep its share price up. For long term reliable dividends companies like Colgate, Clorox and Proctor and Gamble come to mind. These reliable consumer products companies keep making money year in and year out. If you do not want to wake up some morning to find that your stock portfolio has evaporated invest in dividend stocks like these. Other sources of reliable and healthy dividends are utility companies. Finding Good Dividend Stocks Running a stock screen is a good way to find companies that pay dividends. If you require a certain percentage dividend return set the stock screen to show only stocks that make the cut. Look at how long the company has been paying dividends and check to see if there are gaps in their payment record. Along the way look at the general margin of safety of the company and its intrinsic stock value. You can always profit by using fundamental analysis. Well managed companies with strong profits and competent cost containment typically pay good dividends and are good investments for the long term. For a well balanced stock portfolio, investors commonly invest in dividend stocks as part, growth stocks as part, and invest in a mix of market sectors as well. Remember that dividend stocks commonly increase in value during a down market.

Transcript of Invest in Dividend Stocks

Page 1: Invest in Dividend Stocks

INVEST IN DIVIDEND STOCKS

www.ProfitableInvestingTips.com

Page 2: Invest in Dividend Stocks

Invest in dividend stocks for security and a steady

income.

www.ProfitableInvestingTips.com

Page 3: Invest in Dividend Stocks

There are companies that have routinely paid quarterly dividends for as much as a

century.

www.ProfitableInvestingTips.com

Page 4: Invest in Dividend Stocks

If you want to sleep at night invest in dividend stocks. A contrarian might argue

that buy investing in a secure stock that you will give up the potential for

growth. www.ProfitableInvestingTips.com

Page 5: Invest in Dividend Stocks

However, good dividend stocks typically outperform

the Standard and Poor’s 500 stock index over a decade.

www.ProfitableInvestingTips.com

Page 6: Invest in Dividend Stocks

What Are Dividends?

www.ProfitableInvestingTips.com

Page 7: Invest in Dividend Stocks

A company that makes money oftentimes pays a portion of its profits to

shareholders on a quarterly basis.

www.ProfitableInvestingTips.com

Page 8: Invest in Dividend Stocks

Sometimes this dividend is a onetime payment based on exceptional circumstances.

www.ProfitableInvestingTips.com

Page 9: Invest in Dividend Stocks

However, when we suggest that you invest in dividend stocks we are talking about

companies that send a shareholder a check every

fiscal quarter.

www.ProfitableInvestingTips.com

Page 10: Invest in Dividend Stocks

Dividends from a strong company are a reliable

source of cash. They are also proof of the

strength of the company and should be considered when doing fundamental analysis

of a stock. www.ProfitableInvestingTips.com

Page 11: Invest in Dividend Stocks

In some ways dividends are like interest from bonds. A secure company will pay a set dividend that does not

change with prevailing interest rates.

www.ProfitableInvestingTips.com

Page 12: Invest in Dividend Stocks

Thus the price of the stock may go up with lower

interest rates and down with higher rates.

www.ProfitableInvestingTips.com

Page 13: Invest in Dividend Stocks

High Dividends of Consistent Dividends

www.ProfitableInvestingTips.com

Page 14: Invest in Dividend Stocks

The general reason to invest in dividend stocks is long term, consistent dividends.

www.ProfitableInvestingTips.com

Page 15: Invest in Dividend Stocks

This is what helps you sleep at night as a stock investor.

www.ProfitableInvestingTips.com

Page 16: Invest in Dividend Stocks

The higher the dividend the better but if a company is

stealing from R&D capital to pay dividends it might just

be getting a little too desperate to keep its share

price up.

www.ProfitableInvestingTips.com

Page 17: Invest in Dividend Stocks

For long term reliable dividends companies like

Colgate, Clorox and Proctor and Gamble come to mind.

www.ProfitableInvestingTips.com

Page 18: Invest in Dividend Stocks

These reliable consumer products companies keep making money

year in and year out.

If you do not want to wake up some morning to find that your stock portfolio has evaporated invest in dividend stocks like

these. www.ProfitableInvestingTips.com

Page 19: Invest in Dividend Stocks

Other sources of reliable and healthy dividends are utility

companies.

www.ProfitableInvestingTips.com

Page 20: Invest in Dividend Stocks

Finding Good Dividend Stocks

www.ProfitableInvestingTips.com

Page 21: Invest in Dividend Stocks

Running a stock screen is a good way to find companies

that pay dividends.

www.ProfitableInvestingTips.com

Page 22: Invest in Dividend Stocks

If you require a certain percentage dividend return set the stock screen to show only stocks that make the

cut.

www.ProfitableInvestingTips.com

Page 23: Invest in Dividend Stocks

Look at how long the company has been paying

dividends and check to see if there are gaps in their

payment record.

www.ProfitableInvestingTips.com

Page 24: Invest in Dividend Stocks

Long the way look at the general margin of safety of

the company and its intrinsic stock value.

www.ProfitableInvestingTips.com

Page 26: Invest in Dividend Stocks

Well managed companies with strong profits and

competent cost containment typically pay good dividends and are good investments for

the long term.

www.ProfitableInvestingTips.com

Page 27: Invest in Dividend Stocks

For a well balanced stock portfolio, investors

commonly invest in dividend stocks as part, growth stocks as part, and invest in a mix of market sectors as well.

www.ProfitableInvestingTips.com

Page 28: Invest in Dividend Stocks

Remember that dividend stocks commonly increase in value during a down market.

www.ProfitableInvestingTips.com

Page 29: Invest in Dividend Stocks

As such it can be possible to buy these in anticipation of a recession and sell when they move contrary to the market.

www.ProfitableInvestingTips.com