Stocks That Pay Dividends
By GuestPoster
The UK stock market has suffered similar losses as the U.S stock market thanks to the worlds economic decline. This has left the market in a volatile state which has put many investors off. Interests rates have also been in sharp decline which has left individuals with a problem of where to actually put their money. It has to be safe and offer a good rate of return.
There are other options out there for individuals looking to generate income. Bonds and property are viable options however many bonds experts are predicting that a fall in value is imminent. That leads us back to dividend paying stocks and all the income they can generate. When a company has had a great year it often rewards it’s investors with dividends. It’s essentially a way to share the profit with those who have believed in the company enough to part with their hard earned cash. In other cases, the company may choose to invest it’s dividends back into the company with the focus on achieving growth. This should be seen as a good thing by investors as the company in question will hopefully increase it’s market share and therefore increase the value of your holdings.
If you’re looking for a good place to put your money then dividend paying stocks may just be what you need. Look over a period of five years for companies who have been paying out dividends regularly. They are usually paid quarterly. This sort of information will be available if you sign up for an account with Google Finance. It might also be worth ordering a copy of the companies annual report. This will give you much more detail on the financial state of the company. It will also show you if they have reinvesting profit back into the company rather than paying out to shareholders. Once you are comfortable operating in this market you can easily move on to more advanced topics such as day trading for a living. Many individuals use automated stock trading software to increase their profitability.