Why You Should Invest in Dividend Stocks
Most of us want to save for retirement. There are those who afraid that they will outlive their retirement savings. Investing in dividend stocks is one great option in helping you save for your retirement. Investing in dividend stocks is a good way to save up for your retirement without any effort.
If you invest in dividend stocks, you will be able to earn regular dividends from your investment. You profit from this kind of stock if there is a difference between the purchase price and the sale price while taking into account broker commissions and taxes. When a company pays dividends, then this is the time you earn money. An increase in the value of the stock would also increase your dividends.
Different stocks will have different dividend value. If the company is profitable then you get more dividends. The success of a company affects the amount of the dividends you receive.
What you expect to earn when the company issues a dividend is called the dividend yield. And since they provide you with income, these stocks are low risk.
If you are looking for companies to invest dividend stocks on, then consider the following.
One of the most valuable companies in the world is Apple. Investing on dividend stocks with Apple company is a good investment since the company is growing stronger each year. What affects the dividend pay of the stocks is the state of the cash flow of the company and Apple has a great cash flow. This company generates billions of dollars in cash flow every quarter. Investing in Apple is one of the best investments you can make.
You can also put your money in dividend stocks of AT&T company. Investor of AT&T have been provided with great returns. For the past 25 years, it has been paying dividends to their investors and the value of these dividends is slowly rising. So, if you invest in AT&T, you can expect your future returns to be good.
Microsofts core business is very strong and is a promising dividend stock investment for you. Their consumer sector which sells computers and gaming hardware is very profitable. Their B2B department is also very profitable since most companies use software for their business.
Salesforce is one of the largest software companies in the world that has strong yearly earnings. It is a growing company since more and more businesses are spending on the cloud services that they are offering. Consumers that wish to use their products have to keep making payments and this is the reason why their cash flow is very strong.
You can follow the advice of expert Jim Cramer if you want to know other worthwhile dividend stock options. You can get some of cramer’s picks from this website.
Cited reference: published here