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Do you love dividends?
I do.
Here are 4 steps to becoming a successful dividend investor.
- A THREAD -
I do.
Here are 4 steps to becoming a successful dividend investor.
- A THREAD -
1.
"Understand the truth behind dividend yields"
Companies understand an investors desire for a dividend that is stable.
Not only stable, but a dividend that has the potential to increase.
For that reason….
"Understand the truth behind dividend yields"
Companies understand an investors desire for a dividend that is stable.
Not only stable, but a dividend that has the potential to increase.
For that reason….
Companies that operate in cyclical industries...
For example automotive, construction and airline industries.
May payout LESS of their earnings in dividends during periods of growth, so that they can maintain their dividend in other periods.
For example automotive, construction and airline industries.
May payout LESS of their earnings in dividends during periods of growth, so that they can maintain their dividend in other periods.
There are also companies that choose not to pay out dividends & use their earnings for continuous reinvestment.
This can facilitate long term growth.
But always pay attention to the companies dividend policy, the industry as well as their earnings to get a better idea.
This can facilitate long term growth.
But always pay attention to the companies dividend policy, the industry as well as their earnings to get a better idea.
2.
"Fix your dividend mindset"
Stop searching for the highest yielding stock.
With high yields comes high risk.
Dividend investing has been around for a while.
That’s why there are lists like “The Dividend Aristocrats” which have been thoroughly examined and analyzed.
"Fix your dividend mindset"
Stop searching for the highest yielding stock.
With high yields comes high risk.
Dividend investing has been around for a while.
That’s why there are lists like “The Dividend Aristocrats” which have been thoroughly examined and analyzed.
If you think it’s too good to be true…
Then it probably is.
Don’t invest in a company just because it “takes care” of its shareholders.
There is probably something else going on that you should be aware of.
Ratios will give you clues.
Financials will give you the answers.
Then it probably is.
Don’t invest in a company just because it “takes care” of its shareholders.
There is probably something else going on that you should be aware of.
Ratios will give you clues.
Financials will give you the answers.
3.
"Don’t overlook success"
Successful companies are successful for a reason.
Don’t convince yourself otherwise.
Some of the wealthiest investors (Buffet - classic example) made his money by investing in what works.
- Coca-cola
- Apple
- Bank of America
"Don’t overlook success"
Successful companies are successful for a reason.
Don’t convince yourself otherwise.
Some of the wealthiest investors (Buffet - classic example) made his money by investing in what works.
- Coca-cola
- Apple
- Bank of America
Don’t go against the grain when adding companies to your dividend portfolio.
Find what works.
And ride the wave.
You’ll be happy you did.
Find what works.
And ride the wave.
You’ll be happy you did.
4.
"Diversification"
Stop adding companies just because of their growing dividend.
Within any dividend portfolio, proper diversification should still be a priority.
There are many ways to diversify.
I focus on the following…
"Diversification"
Stop adding companies just because of their growing dividend.
Within any dividend portfolio, proper diversification should still be a priority.
There are many ways to diversify.
I focus on the following…
- Industry (especially if they’re cyclical)
- Geographically (decreases macroeconomic risk)
- Asset class (Stocks, ETFs, Commodities etc)
- Geographically (decreases macroeconomic risk)
- Asset class (Stocks, ETFs, Commodities etc)
Don’t neglect diversification.
It may sound cliche...
But if you don’t like taking on unnecessary risk, it should be a high priority.
It may sound cliche...
But if you don’t like taking on unnecessary risk, it should be a high priority.
If you love dividends as much as I do, you’re going to love this course.
The Complete Investors Accelerator Pack will set you up with all the tools you need to become the dividend investor you were meant to be.
Grab it here. https://bit.ly/dividendmoney
The Complete Investors Accelerator Pack will set you up with all the tools you need to become the dividend investor you were meant to be.
Grab it here. https://bit.ly/dividendmoney
