I love getting dividends, to me that is money that I did not have to work for and it’s passive income for me to use. My goal is to make $500 per month in dividends. With $500 dollars per month, I can pay the light bill, the water bill and the phone if I need to. Once I hit that goal, I will still reinvest those dividends to make money. All that sounds good but there are some negatives Thing about investing into dividends paying stocks.
What are the negatives of investing into dividend stocks?
One of the biggest negative things about dividends is that the company can stop paying that dividend. Yes if a company is losing money and the board chooses to cut off the dividend, well there is nothing that you can do about that. If they dividend their dividend, well you will not get any money from them so that par tis scary. Also the company that you invest in can cut the dividend in half of they want to.
So if a company was paying a .17 cent dividend per month, they can cut that dividend to .10 cent per share and they pay out every three months. So the best thing that you can do is do your own research before buying any stock or ETF. After doing your own research, you can pick the company that you think it’s worth investing in. I am not giving any financial advice or stock advice. This is why you look up the company that you want to invest in.
Getting your dividend cut is not fun at all and this is why you must invest in good companies. Below I made a video going over the other negatives about dividend investing and if you need some info about the stock market and what stocks that I like, check out my YouTube channel here: https://www.youtube.com/channel/UCKIXApIrXdvyajZvKV4VSHg
