There are a lot of if advantages of dividend investing but before we talk about that we must talk about some of the disadvantages of investing in dividend paying stocks. But first I need to say that I am not giving you any advice on the stock market or what to do with your money, using your own money in the stock is a risk that you will take so please do your own research before buying anything on the stock market.
Dividend investing is a long term game that will take a long time for you to make any real money that can for dinner or a bill that you have. Dividends to me are meant for paying bills and having a second stream of income. Unless you invest a lot a lot of money upfront, you will be buying dividend paying stocks all the time. I have been investing into dividend paying stocks I tend to take $150 every two weeks out of my pay check to buy stocks.
As of right now, I make about $168 per month in dividends which is not bad but that money can’t do much and I have been investing for the past 2 and the half years, so yes it’s a slow grind but it’s a long term for me and I reinvest my dividends back into the stock.
What are the advantages of dividend investing?
Well one of the best things about dividend investing is the passive income. One of the dividend paying stocks that I have ticker symbol ARR which is a REIT, they pay me each month $45 dollars which is nice. I don’t have to work for that money. It comes once per month and when you see that dividend paying come in without me doing anything is nice. I think dividend investing is the most passive way to make money.
I get this payment every single month and that gets reinvested back into the stock. Now $45 bucks is not a lot of money but look at it this way, if I reinvest that $45 dollars back into the stock for the nest 10 years, how much money will I have at that time? With the $45 dollars right now for one year that is 540 dollars per year without me doing any work. I can stop buying that stock right now and get paid that money per month and I can use that money right now if I wanted too.
Dividend income can be a second stream of income for you right now to build on. Yes working a second job can do that also a stream of income but dividends can bring a third stream of income. Just think about this, lets say in 10 years of you investing and reinvesting you dividends back into those stocks that paid you, maybe over time you can build you dividends to $1000 per month and that good money. With $1000 bucks, that can pay your light, water, cell phone and any other bills that you have and most people have a Roth or a 401k as well on top of that.
The sooner you start, the sooner you can get that first dividend payment and start the snowball effect. In today’s world where you just having that one job to pay all of the bills is not the same back in the day. These jobs today can lay you off, they can move and pay you less money. Working time for money is a thing in the past and make your money work for you. Just think if you invest 10 years ago into dividend paying stocks, today you will be still getting dividend payments today without having to work for it.
think of all the times you wasted money on things that you did not like or did not work, that money could have been put to work. Passive income is a must today and dividend investing is one of the best ways in doing so. It’s a slow grind but if you can keep investing and reinvesting those dividends the money will be up faster.
Just think about this, if I keep buying ARR stock and reinvesting the dividends every month, I could make $100 dollars per month from you stock. It’s not a good idea to put all of your money into one stock because with dividends paying stocks, that payment could be cut but if you buy a lot of dividends stocks a spread out your risk is a better deal.
So I may just get that ARR stock to $50 dollars and then don’t buy any money and just reinvest the $50 dollars back into the stock and move to a different stock and build that up. But you never know and least I have a game plan how I want to move and having a game plan is key. So what is your game plan or goal that you want from dividend investing? Set a goal for yourself and start investing. I use robinhood as a broker and you can click here to check them out: Click here: and check out my YouTube channel that I have talking about dividend investing and passive income:
