There are a lot of factors when looking for strong dividend paying stocks. Everyone factors are different because everyone game plan is not the same. Yes people like strong dividend paying stocks but they may hold them for a short amount of time. For me I plan on holding my dividend paying stocks for a very long time. I want to make $500 dollars per month with dividend paying stocks, this will take a lot time to get there but right now I am making about $75 bucks and counting. Here are the factors that I use when looking into strong dividend paying stocks. Please make sure that you do your own research before buying any stock or ETF. The way I buy stocks is my opinion and I am not a stock expert by any means.
The company:
One of the main things that I look at in a strong dividend paying stocks is the company and how the company its money. This is very important cause I must know how they make money and I must understand when they make the money. Whatever the company does to make money, can I see them making money in the future or is it a dying business modal they have. For example EV cars are coming out and I need to see how they make money and on what. How’s their EV cars are doing and can I see them making money for the next 20 or 30 years. Learning how to company makes money will tell me if I should invest in them.
One of the companies that I like is called Main street capital and the ticker symbol is MAIN. They provide private debt and capital to lower to middle market companies. They offer entrepreneurs and business owners management teams and financial sponsors a lot of advantages to help each other. So that’s the jest on how they make money. I also look at their company portfolio of companies they lend money and those companies look great to me. So only I look at the company itself but I also look at the companies that they help and the companies that lead money to see of those companies are good business to get involved in. Here the link to their about page where they go over what main street capital do and how they money: https://www.mainstcapital.com/about
The graph:
I use ronbinhood to buy my stocks on the stock market. The one thing I like about robinhood is the graph that they have. It’s one of the best I have seen and this plays a big role when buying any stocks. If there line on the graph was going go for years and over the years it’s going down and down and getting worse, than I maybe would not buy that stock. That tells me that the company is not doing well and something happened to them so I would find that out. They may come back strong but no one knows that. It depends if they have some good news coming out or they did something to come back or they are changing right now. You really want a graph that tends up slowly over time. So I look at the graph to see what’s going on.
The last thing would be the dividend:
Yes something the divided play a role when I am buying stocks. Yes we should not let the dividend payment changed our minds but for me I am a dividend investor and I so do look at how much a stock is paying in dividends. I don’t let the dividend payment fool me, just because it’s a nice dividend payment does not mean the company is good. If a company pay a .50 cent dividend per month but on the graph it’s going down, then I would do some more homework but I may not buy that stock. And keep in mind that any of these dividend paying companies can cut, reduce and stop paying a dividend, they don’t have to pay if they choose to so picking a good company is key. I like companies with a long history of paying stocks. Where do I find the history of a company paying dividends? The main site I use is https://seekingalpha.com/ and this site is my go to find new info and to see of nay news I missed on the stock market.
Dividends:
Dividends are cash payments to the shareholders from the company, this is passive income. I only invest into companies that have a great history of paying dividends, I look at how the company makes money I understand how they make money. I look at the 5 year to 10 year past graph to see what’s going on over the years. I keep in mind that companies can cut, reduce and stop paying dividends so picking the right company takes time but do your own homework before buying any stocks. You can visit my YouTube channel where I go over the stocks that I pick and buy and show you why I picked them. Go to YouTube and type in The Dividend Stock King. That’s my stock channel and please like the videos and sub to the channel. Here the link to robinhood if you are looking for a broker: Click Here
