Dividend Investing: The Beginner's Guide to Create Passive Income (Use the Power of Dividend Growth to Create a Winning Portfolio)

By Michael Thigpen

Anyone who knows personal finance will tell you that investing in the stock market is essential if you eventually want to have enough money to retire. The stock market has made plenty of people wealthy, especially during times of incredible economic growth. But at the same time, many more have lost a lot of money, particularly when stock

• Language: English
• Publisher: Michael Thigpen
• Release date: Oct 18, 2023
• ISBN: 9781775101246

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Dividend Investing

The Beginner's Guide to Create Passive Income

(Use the Power of Dividend Growth to Create a Winning Portfolio)

Michael Thigpen

Terms and Conditions

No part of this guidebook shall be reproduced in any form without permission in writing from the publisher except in the case of brief quotations embodied in critical articles or reviews.

Legal & Disclaimer

The information contained in this book is not designed to replace or take the place of any form of medicine or professional medical advice. The information in this book has been provided for educational & entertainment purposes only.

The information contained in this book has been compiled from sources deemed reliable, and it is accurate to the best of the Author's knowledge; however, the Author cannot guarantee its accuracy and validity and cannot be held liable for any errors or omissions. Changes are periodically made to this book. You must consult your doctor or get professional medical advice before using any of the suggested remedies, techniques, or information in this book.

Upon using the information contained in this book, you agree to hold harmless the Author from and against any damages, costs, and expenses, including any legal fees potentially resulting from the application of any of the information provided by this guide. This disclaimer applies to any damages or injury caused by the use and application, whether directly or indirectly, of any advice or information presented, whether for breach of contract, tort, negligence, personal injury, criminal intent, or under any other cause of action.

You agree to accept all risks of using the information presented inside this book. You need to consult a professional medical practitioner in order to ensure you are both able and healthy enough to participate in this program.

Table of Contents

CHAPTER 1: ADVANTAGES OF DIVIDEND INVESTING

CHAPTER 2: FIGURING OUT INCOME FROM DIVIDEND PAYMENTS

CHAPTER 3: IMPORTANT INVESTMENT STRATEGIES

CHAPTER 4: HIGH YIELD INVESTMENTS

CHAPTER 5: USING OPTIONS FOR INCOME

CHAPTER 6: TOP 10 MISTAKES MADE BY DIVIDEND INVESTORS

CHAPTER 7: TAX IMPLICATIONS

CHAPTER 8: STARTING LATE

Chapter 1: Advantages of Dividend Investing

In today’s international, all of us have a sense that we want to develop our money. Many human beings would additionally like a supply of passive earnings and a manner to feature to their earnings in retirement. Living off Social Security isn’t in reality an choice for any nice-of-lifestyles. Unfortunately, a ways too many rely most effective on Social Security. It wasn’t that long in the past when human beings should rely upon FDIC insured banks to no longer best grow their cash however additionally to behave as a source of passive profits. Bonds, that are essentially loans that a private individual makes both to a government entity or to a employer, extensively utilized to be a reliable way to earn hobby payments off of your money. Back in the days while you can earn 6 to 10% hobby from bonds, it turned into a totally secure and moneymaking manner to earn money. It’s hard to accept as true with that during 1990, which virtually wasn’t that lengthy in the past, you can surely buy US treasuries and earn stable money off of them every six months. You also have the assure of protection on your foremost that turned into inside the fingers of the US authorities. Of route, nowadays, the authorities is in massive debt and the debt maintains to grow. Now, the authorities is simply threatened by using growing interest quotes. Already, paying hobby is nearly turning into as large a part of the finances because the defense budget is. Can you believe a world wherein the government is paying extra money for hobby on its debt than it's far for countrywide protection? That is a pretty crazy situation.

So, as we alluded to inside the advent, there is nonetheless a secure manner that investors can protect their predominant as a minimum to a certain degree and also earn a passive earnings. This is by means of making an investment in dividend stocks.

There are different methods that you could do this, however one manner that offers the excellent advantages of boom that the stock market can provide, with as a minimum a sure diploma of safety, is to spend money on strong businesses with growing dividend payments. Later inside the chapter, we're going to take a look at a few businesses that function examples. But earlier than we get into that, let’s explain what dividends are and the way they work for those who are beginners with regards to the concern of dividend investing.

A simple review of what dividends are

So, first things first. Right now, the stock marketplace keeps to offer a way that you may develop your money at a tempo this is quicker than inflation. Many people are understandably leery of the stock market because they lived via at least the 2008 economic crisis, and plenty of others are old sufficient to don't forget both the recession after the Sep 11 terrorist assaults and the dot com recession that came about within the past due 1990s. You also don’t have to be that old to don't forget black Tuesday in 1987. So many human beings have a misperception of the inventory market-primarily based in component on those crashes and additionally based at the misperception that the inventory marketplace is a playing on line casino. Now, of direction, if you method it that manner, the inventory market might be a gambling on line casino. And many human beings do procedures this way by means of carrying out hypothesis inclusive of day buying and selling shares which will earn fast profits. We received’t get into that right here, but it is going without announcing that most human beings aren't disciplined enough to make money from those kinds of sports. The fact is maximum people seeking to make quick coins inside the stock market. But the fact that many human beings do be successful at such activities continually continues those desires of making rapid cash in a day or  alive.

Of course, in case you’re interested by dividends, you're a extra sensible and realistic character in terms of dealing with cash. You realize that investment and now not speculation is the time-examined and proper manner to grow your cash over the lengthy-time period. The truth is the long-time period buyers who buy-and-maintain and don’t panic continually pop out in advance.

The awesome despair and the 2008 monetary crisis both illustrate why it is silly to panic and pull your cash out of the stock market at some point of downturns. Let’s check the 2008 crash first. For our benchmark, we’ll simply use the Dow Jones industrial common. Although it’s not the excellent benchmark probably, the valley of the Dow is what maximum human beings accomplice with the inventory market, and of direction, it does song with all the different indices.

According to the St. Louis Federal Reserve Bank, on July 10, 2009, the Dow Jones commercial common was 8146. Two years later, it changed into already over 12,000. The marketplace had already grown by way of about fifty four% at that time. By the time Pres. Obama was approximately to leave office in late December 2016, the Dow Jones business average become approximately 19,seven-hundred factors. So, for the reason that that first date we quoted, the stock market had basically grown approximately 142%.

Now, the ones are a few returns. Hopefully, our readers are conscious that you can purchase index finances that music primary stock market indices. So, consider what you’re money may want to’ve finished investing simply in the Dow Jones commercial average over that point span.

Now, of course, we are not looking to peddle the concept that this form of increase is usually going to happen. The point of this exercise is most effective to illustrate that recessions, even primary ones, are brief occasions. The usual increase of the economic system and the capital in the economy is some thing that could be a consistent increase component, and that’s been demonstrated over a very long time period.

So, we will even see this inside the mother of all recessions, the first-rate melancholy of the Thirties. In July 1929, the inventory marketplace was experiencing an unprecedented upward push in fee. It was nearing the 5000-mark at that time. That is pretty extraordinary given that the economic system changed into an awful lot smaller lower back then. By the summer time of 1932, the market has dropped all of the manner all the way down to about 842 factors. Now, that appears pretty dismal and it honestly changed into. There have been many factors that brought about this; one of the most crucial become the Smoot-Hawley tariff act, which almost single-handedly killed international trade. The Federal Reserve, which at that point had best been around for about 15 or sixteen years, clearly didn’t know the way to deal with the disaster. So, another issue that kept the depression going and worsened its consequences is that the Federal Reserve severely reduced the cash deliver. Had those  events not took place to, upload to the stock marketplace crash,