Dividend Investing Advantages!
Dividend Investing is the way to go. I am extremely passionate about investing into companies that are high yielders and pay consistently. Why? Reasons below:
1.) A source of passive income – I do not do anything to receive the Dividend payment, no work whatsosever! You have a few options on what to do with the payment – reinvest it or keep it for other expenses.
2.) DRIP – Reinvest the dividends to grow your portfolio without having to put anyone extra money into it. This can help with dollar cost averaging and with a consistent payment or an increasing one given in a down market could mean more shares purchased for you!
3.) Tax Advantage – Taxed at a lower rate than other forms of income, for the time being!
These are the reasons why I invest into high yielding companies that consistently pay an increasing Dividend. Make sure you do your due diligence and have done proper research on the company you invest in. I don’t recommend anything you do not feel comfortable with, but wish you the best of luck! Thanks for stopping by and I hope you enjoyed this quickie!
-Lanny B, MBA-Finance Student at The U of A