Dividends: Dividends are a great way to create a well rounded and strong portfolio. Even if the stock price falls the dividend usually does not. This is the companies compensation to you for parking your money with them.

Here is a good place to start:

1)                  Make a list of as many companies that you can that seem like good companies.

2)                  Go to their web pages and look over the company’s history and what their future goals are.

3)                  Look at whether they pay dividends or not. We want the ones that pay dividends to create a passive income and compound interest.

4)                  Look at the history of stock price and figure out if it looks like a good time to buy. The stock price may be high and stable for some time, but if the dividend is still delivering well it may be worth buying then.

5)                  Figure out the dividend percentage. This is usually given on the site, but if it isn’t it can be easily figured (annual dividend –divided by- the stock price= dividend%). We are looking for dividends between 4 and 10 percent for the long term.

6)                  Make sure your broker has a dividend reinvestment program.

7)                  Invest your dollars into a dividend paying stock.

8)                  It will take 1 to 3 months before you will recieve your first dividend payment. This depends upon what the company has for a dividend payout date.

Continue to re-invest your dividends to compound your earnings. Once you make a enough in dividends to pay for your lifestyle or supplement your income just let the dividend payments roll in and enjoy.

          Here are some resources to help you succeed:

Helpful book Titles coming soon!