Take My Dividend Strategy: How To Find Which Stocks To Invest In For The Dividend Income

By Tracey Edwards

Did you know that companies pay dividends no matter what the stock price is doing? 

Fancy being able to invest, and make money in the stock market, without having to worry about the current ups and downs on price. It's so much less stress, let me tell you.

Hey there, I'm Tracey. I invest in the stock market using a dividend investing strategy. Companies pay me every month out of their profits, just for being a stockholder. It's awesome.

It means I can get on with life while I get those regular cash deposits. I don't need to check the market and fret over what it's doing.

Of course, there are some things I do look for when choosing which companies I want to invest in. It's not totally random.

This book is about those things. The three criteria I look for when choosing which stocks to invest in for the dividend income.

Whether you've never invested before (I have a chapter on getting started) or whether you want a simpler strategy or just some advice on how to structure a dividend portfolio, this book will be your friend.

Want to steal my dividend strategy?

Be my guest.

• Language: English
• Publisher: Tracey Edwards
• Release date: Aug 23, 2018
• ISBN: 9781386463122

Book preview

Introduction

When I was in my twenties I made some good decisions and some bad decisions.

While I’m sure the bad decisions would make for a far more interesting book, it’s one particular good decision I made that has had the most impact on my life. At least financially.

I invested two thousand dollars in the stock market.

It was rather a rash thing to do, considering that I personally knew no-one else that had done such a thing. My friends were more interested in buying clothes than stocks. They were perplexed why I didn’t blow the dough on a trip to New Zealand instead.

But I was stubborn and didn’t back down. I taught myself from books, mostly. And also trial and error.

Within five years of continuous investment, I had built up a strong portfolio. Enough that I was able to give up work. I still wasn’t financially independent at that point, but I had enough that my then partner and I were able to start a family without having to worry about two wages.

I didn’t think much more of it, to be honest. I was busy with two small kids running around.

That portfolio continued to build and grow over time. Doing its thing like compound interest tends to do.

Then last year I become single again. We split the financial side of our relationship up and I was left wondering what I was going to do now.

Then it became clear.

The stock market had been good to me all those years ago. I was comfortable with it. I liked it. I understood it. It was my jam.

After all those years, my portfolio was now in a position where I could make a few changes, invest for the dividend income, and I would be financially free.

I didn’t have to go back to work. Blech. I could switch from a growth strategy to a dividend strategy and be perfectly fine.

I would become part of the retire early crowd and do what I pleased.

All because of the stock market.

You could do the same.

This book is my current dividend strategy. It’s how I choose what to invest in.

I cover everything from setting up a trading account, to more advanced strategies for those that want that. I’ll show you how to allocate and build your own dividend portfolio.

My hope is that by sharing my process it will help you in your own journey to financial freedom.

Are you ready?

Cool. Let’s go.

1

Why Invest For Dividends?

Why should you invest for the dividend rather than for growth (and what does investing for the dividend even mean?)

Before we get into the what's and the how's I'm going to tell you right up front why investing for the dividend is a good idea.

In a nutshell, you get paid to invest your money. It's that simple.

It doesn't matter what the stock market as a whole is doing, or even what a particular company's stock price is doing. Whether it's up or down (the same volatility that causes most stockholders to worry) you'll get the dividend payout regardless.

It's the ultimate form of passive income.

Sound too good to be true? You’re probably a little wary, am I right?

That’s perfectly natural. So before we get into math and strategy and nerd out on choosing some sweet dividends, let’s try and answer some of the more common questions that I get asked about dividend investing.

So What Exactly is Dividend Investing?

Dividend investing, or income investing, is where you choose companies based on their dividend yield, rather than the potential for the stock price to grow over time.

It's a less stressful approach to the stock market because it doesn't rely on the regular market fluctuations on the stock price of the company.

And the dividend is, what, exactly?

A dividend is cash (or more stock if you choose to reinvest) that's paid to shareholders out of the companies profits. It's a portion of their earnings that's given to you each quarter or six months (depending on how often they pay).

Why Do Companies Pay Dividends?

Mostly, dividends are paid to attract investors. The more money that people invest in the company, the more money that company has to grow the business.

They use that money to expand into new