I have 5 dividend stocks that pay me an averaged 7.5% in dividends and have grown averaged to 42% in the last 5 years. The dividends I cash out each year and use to supplement my SS income.
My grand daughter age 11 years old overheard me talking to her mother one day and asked me about the stocks because she was not seeing any gain on her savings account of $2,000.00 she saves 50% of all money she earns and receives for others as gifts etc..
Her mother and I had a Scott Trade account opened and put $500.00 of here savings into it and purchased a few shares of the same stocks I have. currently she has 2/3 rds of her money in stocks and is gaining nicely she is very happy on the results.
Teach you children and grand children how to save and the reasons for doing it at an early age they will thank you for it and be glad you took the time to help them.
To get $1,000 a month for shoring up your SS at 3% dividend, you'd have to have $400,000 in capital. If you take out another 3% each month from sale of capital, or another $1,000, that would be $24,000 a year for the first year. Each year the amount you would get is slightly less by $360. i.e. 2nd year is $23,640, 3rd year is $23,280
It would take 34 years for you to have about $4,000 left over in stock and have gotten for the 34th year $12,120.
3.2%? Is that the best you got? Nobody's gonna retire on your 10 best. You better read the other guys article, he thinks the market is about to choke.
This article is laughable. Not one recommendation exceeds 5% and that isn't even keeping up with the present rate of inflation. Someone needs to take a reality pill. Up until 2008 when 'dubyah' wiped out our treasury and national economy I held several small cap positions that were paying in excess of 14% annual average dividends. Needless to say I was and still am a very small low end investor who cannot afford hundred dollar a share stocks.
Go to your browser and type in "highest dividend paying stocks that sell for under $5 per share." Then do some due diligence and look closely at their financials as well as what funds own them and then diversify with as many as you can afford. I found that when one is down the others will be up and vice versa so I was able over a period of about 9 years to average about 9.5% annual dividend income on an investment of only eleven thousand dollars (Initial investment plus dividend reinvestment). My lowest paid 7% and my highest paid 14% as I mentioned earlier.
For these recommendations to pay that kind of dividend I would have to be a one percenter to be able to buy enough stock to generate such revenues in which case I probably wouldn't need to be invested to retire anyway. This is precisely the kind of advice you get from the so called pros who advise the heck out of you and pocket their commissions for misleading you. Rubbish.
Quite a few stock/Investing tips here from posters, thanks for that.
I've already filled half a notebook page taking notes from everyone.
1. can you buy shares directly from a company, without going through a brokerage.
2. can you set up a dividend re-investment plan, if so, do you still pay taxes on dividends that are re-invested.
3. Are there companies that pay dividends, cap the price of their stock & do stock splits? if so, who are they.
Thanks again, I'll be doing my Homework regarding the market starting today. I'm 47 years old, I've never invested before, Mainly because I've never been more than blue collar lower middle class. I'm working hard to change that someday, hopefully sooner rather than later.
NO dividend stocks! ObamaCare included huge gigantic increases in taxes on dividends.
Time to sell them not buy, wish this author had included this in his hype on dividend paying
stocks. Your return will now belong to the government to spend. Remember this in November.
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