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(How to) How to invest in dividend stocks

MaxiTabClaw

New member
The stock market is one of the best ways to build wealth, but not all stocks are created equal. Whether your long-term investment horizon is five years, 25 years, or 45 years or more, your best option for creating long-term wealth is with a diversified portfolio of high-quality stocks that pay a dividend.

I am looking to gather wealth by investing in dividend.

Need inputs on what to keep in mind while investing
 

MaxiTabClaw

New member
Found a very good piece on .
Companies with a long history of paying a dividend and increasing it annually tend to be larger, well-run companies with an international footprint, consistent growth strategies, and a strong competitive advantage.

Why invest in a big company with a five-percent dividend yield when you can invest in a penny stock with a 15% dividend yield? There is a risk/reward trade-off when it comes to dividend-yielding stocks; the higher the yield, the greater the risk. Is it worth risking all of your capital on an unproven startup for a 15% yield?

High-dividend yields may be attractive when you’re looking at near-zero interest rates and central banks addicted to negative interest rates, but it’s important to understand what you’re investing in and what the risks are.

A stable business that increases its annual five-percent dividend on a consistent basis is more attractive than a business with an eye-watering 15% annual dividend that doesn’t. In fact, companies that grow their dividends are more attractive than those that simply pay a high dividend.
 
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