Dividends: the best stocks to choose now
What do you think?
I will go straight to the point
The best ones are the ones that pay you cash. This means they pay out regularly.
Why?
It is so that you can reinvest or do something else with the income, after paying tax of course. You are free to do what you want and are in control of what is done with your dividend.
This is where the growth comes by compounding.
Of the ones that pay out cash, the ones that pay monthly and regularly are the best. It is also good for those who have a low risk tolerance.
Quarterly dividend payouts are also good if paid out consistently.
Some people prefer capital growth by increase in share price but to be honest there is no guarantee the increase in share price will be sustained.
My view is to at least get something back for the company using my money while it all last.
Once you put your money in stocks, there is no guarantee you will get it back, so I might as well get the most back in form of return.
I know this is a kind of simplistic approach to choosing stock but it may just be what is needed for a beginner and as you learn more, you can introduce more complexities into your stock portfolio.
As for me, I have a low risk tolerance to losing capital. So, I am more of the slow and steady kind of person. No rushing, let time do its thing!
What do you think?
Thanks for reading!
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Disclaimer: Information above is for educational purposes only. See a professional for investment advice. Thank you!