How Dividend Investing changed my life
When you think of dividends, what are you thinking about? Are you thinking about the slow growers with moderate yields, growing companies paying out 1ish percent per year, or the ultra risky 10+% payers? I’ve thought about all three. And all three have an important place in both portfolio and my mind.
I started dividend investing 3 years ago, when I got my first full time job. At the time I thought, “Well I guess I should start investing since I have a full time job now.” But where do I start and how do I find what appeals to me. After I make an account on TD Ameritrade, I notice a number pop up on many of the stocks I look at. That number is the dividend yield. I later learn that the dividend yield is the amount the stock gives back to its shareholders. That seems like a good stock, I get some money back and the price can go up. With that I began to discover the joys and power of dividends. While circumstances have prevented me from continuing after the first year, I still enjoy portfolio growth due to the dividends I consistently receive.
Nothing will ever match the feeling of getting paid to do nothing. That’s how it may feel, you may feel other feelings like the amazement of how you made money appear practically from thin air. That feeling is the first big plus. It also draws you into focusing on cash flow. Cash flow just being the amount of cash…
