Tim Morris - Dividend Investing for Everyone: A Beginners Guide to Building Your Wealth Through Dividend Stocks

Dividend Investing for Everyone

A Beginners Guide to Building Your Wealth Through Dividend Stocks

By Tim Morris

Copyright 2020

All rights reserved.

Published by ZML Corp LLC

Disclaimer

T his book is written for informational and entertainment purposes only. The creator of this book is not an investment advisory service, a registered investment advisor, or a broker-dealer and does not advise clients on which securities they should buy or sell for themselves. It must be understood that a very high degree of risk is involved in trading stocks. The publisher of this book, and the affiliates of the publisher assume no responsibility or liability for trading and investment results. It should not be assumed that the methods, techniques, or indicators presented in this book will be profitable nor that they will not result in losses. In addition, the indicators, strategies, rules and all other features of the information presented are provided for information and educational purposes only and should not be construed as investment advice.

Accordingly, readers should not rely solely on the information in making any trades or investments. Rather, they should use the information only as a starting point for doing additional independent research in order to allow them to form their own opinions regarding trading and investments. Investors and traders must always consult with their licensed financial advisors and tax advisors to determine the suitability of any investment. The author and publisher may receive affiliate compensation from affiliate links used in the book. Dividend Investing for Everyone is copyrighted 2020 with all rights reserved. Written by Tim Morris. Published by ZML Corp LLC.

Introduction

W elcome to the wonderful world of dividends! My name is Tim Morris and, for the duration of this book, I'm going to be your dividend train conductor. The journey we are about to go on will teach you everything you need to know about how to effectively use to dividends to build your wealth in the stock market.

First well go over what exactly dividends are, why and how companies issue dividends, and the reasons dividend investments are a much better place to put your money versus saving accounts and government bonds. Youll also learn why the compounding interest associated with dividends is so powerful, and how it can greatly increase your wealth over time.

Ill then go over the many different dividend funds available to you in both the public and private markets, ranging in annual yields from 1% to 8% or higher. This includes funds in stocks, real estate, master limited partnerships, closed end funds, and bonds.

Next we filter our criteria, digging deep to find the best performing funds from each sector. I show you how they have performed over the years and the growth and dividends you can expect to receive.

And finally, we put the best performers together into a diversified, high-yielding, low-volatility dividend portfolio you can immediately start using yourself.

When youre done reading this book, youll know exactly how to start investing in dividends and building your wealth in the markets. Youll have a much more expansive knowledge of the stock market, and understand why so many investors have put their faith in dividends for hundreds of years. Youll know exactly how to start building your wealth through dividends!

So hop aboard the dividend train, and put on your seat belt, were going for a ride! Choo Choo (please wipe your feet before coming on the dividend train).

Chapter 1: What Are Dividends?

W hat exactly are dividends , and why would a company pay you money? As you may be aware, when you own a stock, you actually own a part of that company. Many companies want to give back to their shareholders for being loyal investors. In the most basic definition, a dividend is a check from a company, paid to each shareholder, based upon the number of shares he or she owns.

Each quarter, a company calculates their revenue and expenses, which allows them to report their earnings. As a reward to loyal shareholders, many companies will give back some of these earnings, which come in the form of a dividend.

W hat Companies Issue Dividends?

Larger, well established companies with consistent revenue tend to be the ones paying the highest, most stable dividends each quarter. These are known as blue chip stocks. Newer companies with inconsistent or even negative revenue, tend to not be able to reward their investors with dividends, as they do not yet have the funds to do so. These types of companies fall into the "start-up" and "speculative" categories.

Besides well-known companies in the S&P 500, there are companies in other sectors of the market which are also known for their dividend payments. These would include companies in commodities, healthcare, pharmaceuticals, utilities, real estate investment trusts (REITs), and master limited partnerships (MLPs). REITs and MLPs are actually required to issue dividends, as stated in their business agreements.

W hy Do Companies Issue Dividends?