On this blog and on my YouTube channel, The dividend stock king and here’s the link if you want to check that out: Click Here
I tell people that we all need to have more than one stream of income to relay on besides out jobs and investing into dividend paying stocks is just one way into doing so. Now In this post, I am not giving any financial advise. On my YouTube channel I stress that I have seen people get laid off from their job and they have nothing coming on as far as money wise and if you can start building some passive income, they can have something coming in to help. I know there are a lot of companies that don’t pay a dividend and why would I invest in them if they don’t pay a dividend. Well there are some reasons to invest into companies that don’t pay a dividend but what is the reason behind.
What is the point in investing in a company that does not pay a dividend?
So here’s the reason to invest in a company that does not pay a dividend. People invest in companies that does not pay a dividend because they believe that the stock price will rise in the future and the stock will be worth a lot of money. For example lets take the stock called Tesla. Back on January 5 2018 the price of tesla was $63.23 per share. Today dates at the time of me writing this post is February 5 2021 the price of Tesla is $854.65. So if you brought 50 shares back on January 5 2018 and sold them today, you would have money a lot of money.
$63.23 times 50 shares would have cost you $3,161.50 back then but right now at the time of me writing this post, if you would sold all those stocks, you would have made $39,436.50 cents if you would have sold all of your shares. Now that may be a rough number but if you invested back then, you would have made some money. You don’t have to sell the shares, you can let the stocks price go up more and more. This is just one reason why people invest in a company that does not pay a dividend.
Now this a lot of money and there are a ton of stocks that are like that and people feel that these types of stocks will go up over time and they want to get in while the price is cheaper. I only buy dividend stocks but I do have a few stocks that does not pay a dividend because I feel like they will increase in the future. So we should be looking for those types of stocks that we feel or have looked up that will increase over time.
Own the stocks that you shop at even if it does not pay a dividend:
Some people like owning stocks of their favorite place to shop and that should be the first thing we invest in anyway. This is how I feel but any place that you shop like Walmart or Kroger. any gas stations that we get gas from, anywhere you eat at, anything that you buy and buy clothes, we need to own least one share of that company and it does not matter if they do a dividend and they don’t pay and dividend, we need to own where we shop at.
Most of these places day pay some type of dividend but some don’t but lets say you drive a Nissan car, you should own that brand and own least one share of that company so you won want you drive. Some people get started investing in the stock market and they don’t know where to start so I tell people to buy the stocks that you buy everyday. I like BP gas and I have an app called the get up side gas app and you can go to the app store and download that app and use my code which is 846AK.
So on this app BP is one of the gas stations where I can get cash back on the gas I would have to buy anyway so I started only buying BP gas. Now to me since I am only buying gas from BP I should own some shares of the company that I shop and be a part owner. BP does pay a dividend but this is just one example of owning where you spend your money. So we should not invest all of the money into dividend paying stocks even though it’s hard not to do but we should be looking for stocks that you done the research and we feel that that stock price will do up. If you are looking for an stock broker, I use webull which is a great company to use to buy stocks and you can check them out here: Get webull stock app: Click here
