Most people enter the stock market lured by the beautiful stories of amazing earnings. We have all heard about these amazing stories of how millions were made by a rookie in record time.
Naturally, we too want to earn money quickly and come to believe that the stock market is the place where a lot of money can be made promptly. So we begin by investing a little bit of money.
If it grows, we spend it back, dividend portfolio for monthly income is, sure enough, many among us end up earning a decent income but rarely does this happen quickly.
Why Is It a Good Idea to Own Dividend Stocks?
- 1 Why Is It a Good Idea to Own Dividend Stocks?
- 2 How to balance dividend portfolio?
- 3 So what are the top dividend stocks for 2018 in my investment portfolio?
- 4 Top 3 dividend blogs that you can follow:
- 5 BEST ETFS THAT PAY DIVIDENDS MONTHLY
- 6 How do ETF dividends work?
- 7 8 Reasons to Have Monthly Dividend ETFs
- 8 Choice
- 9 Lower Risk
- 10 Ease
- 11 Diversification
- 12 Cost
- 13 Return
- 14 Affordability
- 15 Safety
- 16 BEST ETFS THAT PAY DIVIDENDS MONTHLY
Here come three great reasons why building a dividend portfolio is a good idea.
1. The dividend stock is risk-free; Of course, there’s nothing utterly risk-free in the stock market, but you can pretend that if a company can pay dividends, then it must be doing quite well, and will also be quite confident about the future. Usually, these are the businesses that have a solid background and a great future. And these are profitable companies too. So it makes sense to buy these stocks.
2. You can invest the money back; Some companies will let you invest the dividend back. In this, instead of paying you the money, they will offer you more stocks of the same value. Eventually, you earn more because when the price of stocks rises.
3. Dividends give you passive income; All of us want to do the things we love, while our investments keep making money for us. Investing your money in dividend stocks lets you fulfill this desire. Just pick a few good dividend stocks and put your money there. You can then start earning the dividends every quarter or year. The regular payment is surely appreciated. You could get even by more dividend stocks with this money to increase your dividend earnings.
You can find more information about how to build your dividend portfolio.
How to balance dividend portfolio?
A balanced stock portfolio reduces your risk as opposed to making losses in the capital market. The point is the slight loss in a particular stock is cushioned by the gains of your interest in another company. To have a balanced portfolio, your stock-list must comprise- Stocks that pay steady dividends and bonus scrip.
The stock that is immune to changes in the economy. Stocks that have high growth prospect, i.e., stocks that sell below their real value. Low priced stocks that have strong fundamentals that encourage profits. Understanding how to balance your stock portfolio is an invaluable skill that every serious stock trader should take to heart.
There are almost as many ways to pick the high-grade stocks as there are stocks themselves. If you watch the business channels or listen to business news on the radio, many forms of selecting the best stocks are given. Each well-dressed individual on television thinks he is the most knowledgeable.
If The people are under the spell that the stock market always goes up, it ever will. When the stock market is mentioned, there are many stocks and the theories of which are the best stocks cover all the markets. Some shares sell on many exchanges worldwide; others do not. If you are choosing a stock no person has heard about, it can be a company that is just starting out.
It could go in any direction. That is gambling, as to whether that stock ever reaches any potential. Choosing the best properties usually includes household name businesses or fairly well-known companies. For a stock to be the best, it should weather all economic conditions. It might not go up the most, but you can be sure it will still be in business or gobbled up by another company which means you still will probably make money.
Energy will be with us for quite some time, so as previously mentioned you cannot go wrong with oil stocks. They might go down for a bit and cut a dividend, but you will be in good stead for a long time. Some consumer companies are also here to stay.
So what are the top dividend stocks for 2018 in my investment portfolio?
1.BBL – BHP Billiton (PE < 11)
2.BMS – Bemis Co Inc (PE < 12)
3.COP – Conoco Phillips (PE < 8)
4.DD – E.I. du Pont de Nemours and Co. (PE < 10)
5.EMR – Emerson Electric Co (PE < 12)
If you want to find more dividend stocks ideas you can find them in the following video:
Top 3 dividend blogs that you can follow:
This is one of the best dividend blogs out there, written by Tim McAleenan. He shows you how to combine the dividend growth and long-term holding periods.
His articles covering many top stocks such as Bank of America, Walmart, Coca-Cola, etc.He talks about the strategy and mindset behind the best dividend stocks.
In my and Tim opinion the best today’s best income opportunities are in stocks.
Ben’s the founder of Simply Safe Dividends focuses on finding good dividend yields and growth.He focuses also on safe business models and valuations.
Sure Dividend is another popular dividend blog and the founder behind the blog is Ben Reynolds. The investing philosophy that he has is “8 Rules of Dividend Investing”, which combine particular valuations and dividend health metrics with common advice about diversification.
In this video, you can find more in dept dividend portfolio examples.
If you want to track your investments you can download the dividend portfolio spreadsheet from here.
BEST ETFS THAT PAY DIVIDENDS MONTHLY
How do ETF dividends work?
An ETF or Exchange-Traded Fund is a tradable commodity that consists of securities similar to a mutual fund, but they charge lower trading costs and are easier to manage. The ease of
access and use of ETF’s allow buyers and sellers more control to purchase and sell during trading as opposed to Mutual funds that get their purchase or sale
cost based on final day prices after the market has closed.
As a seasoned investor, or first-time participant it is always going to brush up on your facts for market and ETF purchases.
8 Reasons to Have Monthly Dividend ETFs
Investing in ETF funds have almost an unending supply of firms offering to assist in your portfolio. But make sure you do research into which firm your doing business with, check their history and return rates as well as operating cost by the fund manager. The less they take the more you make.
Investing in ETF funds afford you more control than would be readily available with mutual funds for the average user. Having the ability to trade throughout the day can minimize losses in turbulent market situations.
Having a large selection of firms that can assist in your understanding of the market, your current portfolio and projected profits can make the process easier.
Having the ability to change your portfolio daily, weekly or monthly with your fund manager allows you to take advantage of uptrends in the market while diversifying your portfolio to better protect your interests.
Although the initial cost of setting up a portfolio can be daunting in terms of liquating assets and investing your savings. The average investor yields more in monthly returns then lose, making it an investment worthwhile for all to consider.
With greater control comes great returns, allowing your fund manager to control ETF’s has an average yield rate of 4.3%.
EFT’s allow you to invest as you go, adding more capital to your investment as you deem fit.
As long as you research any investment firm you do business with, you can expect return rates ranging 2% upwards of 8% yearly.
BEST ETFS THAT PAY DIVIDENDS MONTHLY
PowerShares S&P 500 High Dividend Low Volatility ETF (SPHD) is a good choice for investors looking to add ETF’s to their portfolio are or start one. With total expenses
at .30% an average yield of 3.6% and over 3 billion in assets, PowerShares S&P is a great investment.
iShares U.S. Preferred Stock ETF (PFF) is a great alternative for investors seeking high return yields. With total expenses at .47% a yield of 5.68% and assets that total over $18 billion dollars, iShares are a safe investment for ETF commodity seekers.
SPDR Dow Jones Industrial Average ETF (DIA) doesn’t always have the highest yields, but if customers prefer Capital appreciation potential on top of the income, this could be the investment for you. An expense budget of .17% with a yield of 2.11% and over 19 billion in assets allows SPDR Dow Jones to keep investors happy.
In conclusion, never be greedy when it comes to profits. Set a benchmark amount that you wish to achieve. Once that amount is obtained, sell all your stocks and re-evaluate your options. In completing that, not just will you be able to make money off a receding economy, but you will also be able to make it quickly.
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