Make your Money, Make Money – Dividends
When you invest in stocks through a financial broker or employer in a 401K plan, you can have your money earn money. If you own stock, you are a shareholder and can reap the benefit of the company’s financial success.
Dividends, is a paid distribution (typically cents per share) from a company’s profits to its shareholders for each stock you own in the company. Example: If I have 100 shares in Microsoft, and they announce a .25 cents dividend (pay attention to your company’s quarterly earnings), I will receive $25 (.25 x 100). Now, 25 cents and $25 might not sound like much but when you don’t think about it, don’t keep checking it, especially don’t cash out. You might wake up like me one morning (14 years later), when my financial broker called me to say, you have $XX,XXX. It was just sitting there (not making money) and would I like to do something with it?
Over these years, I always kept investing and continue to invest in corporations that only offer dividends. The money I invested in, was making money for me. Money I could deposit to my bank account or invest in others stocks (which is what I did cause it wasn’t in a retirement account 401K, IRA, Roth IRA, etc.).
This is easy money, because this is separate from how the stock itself is doing and it’s like getting rewarded for investing.