Building a dividend income stream is quite simple and can be done by any investor with an interest in investing and learning.
The five essential investing steps are below.
- Market Timing – Even though it is difficult to time the market. The basic timing is knowing when the economy is in a recession. Investor psychology is at an all time low. The stock market at this time is filled with many opportunities of good valuations on stock prices.
- Segmenting the most important 11 sectors – Understanding the 11 most important sectors and finding the five largest companies listed on the stock market by market share, sales, and profit. The research should result in a listing of 55 companies or stocks to possibly invest in.
- Dividend Payers – Chose the top two in each of the 11 sectors and are dividend payers from the above 55 companies. The analysis should result in a list of 22 companies or stocks to invest in.
- Diversification – Begin purchasing those shares in each sector in increments of 25, 50, 100 shares or more at a time.
- Dividend Income Stream – List the dividend payment dates on a calendar to create a monthly dividend income stream from the stocks that have been purchased.
The benefits of doing this on your own 1. no extra fees only the one time purchase of a brokerage fees. 2. Diversified Portfolio. 3. Dividend Income Stream created. 4. Dividends are more Tax efficient. 5. Buy and hold strategy created for the longterm.
Author – Sam Latella – Copyright 2019