Stocks are fun!: Achieving financial freedom with dividends
Paperback
ISBN13: 9789925767755
Publisher: Nightlight Pr
Published: Jul 16 2020
Pages: 154
Weight: 0.38
Height: 0.36 Width: 5.00 Depth: 8.00
Language: English
Earlier generations invested in stocks because they had an income that never ran dry. In contrast to investors, who bet on price increases, wealthy people of all ages buy dividend stocks, and they consistently reinvest either the regular distributions, or they use them as income in their old age.
In this first part of the series of books on stocks, the author shows how investing in dividend stocks can, over time, lead to a significant accumulation of wealth that an individual can live on for decades, even in old age.
Building wealth does not have to be boring. In fact, it can even be a lot of fun. If you observe how your shares pay you dividends every month, you stay motivated and continue to invest. Moreover, you do not even need to start capital to get going. Even investors with little money can build up significant assets in the age of online brokers. The author shows exactly how to do this in a separate chapter, in which he uses true-to-life examples to explain how much you need to save every month, in order to achieve your financial goals.
Table of contents
Part 1: If it is not fun, you will not hold out Why shares are fun!
- Why you should become an income investor
- Why dividend income offers more security than your job
- What you need most when you get older: A regular income!
- Why you need to understand the term cash flow if you want to become financially independent
- Why your bank advisor does not recommend that you become an income investor
- As an income investor you are (and remain) involved in economic life
Part 2: Introduction to the World of Dividends
- What are the dividends?
- Why do companies pay dividends?
- When will the dividends be paid?
- What is the dividend yield?
- What is the payout ratio (dividend payout ratio)?
- Why should you invest in dividend stocks?
- Ordinary people who have become millionaires, thanks to dividends Example 1: Anne Scheiber
- What is the compound interest effect?
- High dividends or dividend growth?
- Which sectors pay the highest dividends?
Example 2: Ronald Read
Example 3: Grace Groner
Part 3: How do I prepare for income investment?
- How much should I save? How do I set up a Watchlist?
- What shares does Warren Buffett buy?
- Why I prefer American stocks
- Who are the dividend kings?
- How to open a broker account?
- What is the security identification number?
- Which dividend shares should I buy now?
- How does the Dollar Cost Average Method work?
- What is a dividend reinvestment plan (DRIP)?
- Why monthly payers are interesting
- How often should I check my shares?
- What to do if the stock market crashes?
Part 4: Alternatives to shares
- What are Real Estate Investment Trusts (REITs)?
- What are Business Development Companies (BDCs)?
- What are the dividend ETFs?
Part 5: How much do you need to save, in order to reach your financial goal?
Example 1: Anita, nurse, 52 years
Example 2: Michael, student, 22 years
Example 3: Matthias, branch manager at Aldi, 33 years
Part 6: And finally, the taxes
Addendum: interesting websites for income investors
Glossary
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