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Dividend Stocks: Intermediate Investing
🕑 Added 2024-02-16 18:53:46 +0000 UTCSo you've got your Emergency Savings. You're dollar cost averaging monthly into a well researched Index Fund. And now you want to diversify your portfolio a bit into other investment vehicles.
Welcome to Dividend Stocks.
Dividend Stocks are simple. They're like regular stocks except... they pay dividends. Dividends, themselves, is money that the company pays you for owning the stock. Not all stocks pay dividends.
The great thing about Dividend stocks is that the money you get paid from the dividends can be reinvested back into the stock itself creating a very strong compound interest domino affect.
For me, Dividend Stocks are my 2nd favorite investment vehicle outside of S&P Index Funds. And I personally dollar cost average into them monthly. FXAIX for Index Funds. SCHD for Dividends.
NOW THIS IS IMPORTANT.
There are MANY kinds of dividend stocks and portfolios and index funds. REITs (Real Estate Investment Trusts) are companies that are known for paying the HIGHEST yield in dividends. But getting a high dividend payout DOES NOT MEAN it is the best dividend.
Some dividend stocks have higher Expense Ratios for investing into it. Some dividend stocks perform terribly in the stock market. What's the point of receiving a nice dividend payment if the stock you own is steadily declining in value?
This is why I personally like to, once again, choose the very boring basic route: investing in low cost, low volatile, well diversified indexes of Dividends. They're essentially a huge group of top performing companies that also give out Dividends. RESEARCH THIS ON YOUR OWN. IT'S GREAT INFORMATION TO LEARN AND WIDELY AVAILABLE.
Anyway, in a future video, I'll show you guys an example of a recent portfolio I started as a "test run" so that you can see the compound effect of Dividend investing. For now, if you have any questions feel free to let me know here in our in the Discord.
