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| Stock | Dividend Yield | How to Start |
| Altria Group | 8.12% | Altria Dividend |
| Verizon | 6.81% | Verizon Dividend |
| Simon Property Group | 5.95% | SPG Dividend |
| AT&T | 5.87% | AT&T Dividend |
| Coca-Cola | 3.09% | Coca-Cola Dividend |
| Pepsico | 2.68% | Pepsico Dividend |
Ok, so the term “dividends” really gives off a scary vibes. We get it–but there’s nary a vampire nor a Hellmouth to speak of.
The term dividend is when a company share a small portion of their profits with its investors…for just holding the stock for a quarter.
In stocks, dividends creates a financial incentive to hold the stock during good times and bad times in the stock market.
Let’s say you buy stock from Apple (AAPL), and they make a ton of cash for the quarter. Apple may say, “hey we have all this money, we don’t need it, let’s reward the stock holder by giving cash!”
So Apple–or any other company that has dividends–is just sending money to your brokerage account in the form of cash, for just holding the stock, and being an owner of the company.
There are 3 different dates you need to know about dividends:
This is a date, when the company declares that they’re going to have a dividend.
The ex-dividend date, is a calendar date that you need to own the stock, to qualify for the dividend.
Let’s say, Apple announces a huge dividend payout, and you’re a holder, on record that you’re a owner before that date, you will qualify for the huge dividend payout.
If you own the stock on the ex-dividend date or after then you’re disqualified from the dividend payout.
This is date where you actually receive the cash payment to your brokerage account…pretty easy!
This really depends on the companies. Most companies dividends on a predictable quarterly basis. Few companies pay dividends on a monthly basis, some companies pay on an annual basis and others…whenever they feel like it. This really depends on the company.
If you’re the type of person who’s trying to get maximum gains, then dividend stocks may not be for you. Dividends stocks are usually are offered from mature companies, which may come with low risk with low reward.
If you’re the buy-and-hold type or a long-term investor, dividend stocks may be the best type of stocks for you. They offer low risk, and a consistency way to earn cash.
Here’s a quick getting-started guide.
If you have a favorite brokerage, go there first. Choose a stock that offers dividends, such as the ones listed above. Make sure to read on the dividend yield %, ex-dividend date, payment dates, and it’s history on dividends, before you buy.
Now hold the dividend stock until the ex-dividend date…
Get cash in your brokerage! It’s really that simple.
Dividend stocks offers passive income in its purest form. For most of us, it’s easy money for doing something close to nothing. You have to choose your dividend stocks carefully though. Some companies have had dividends cuts or eliminations, so it’s important to do your research before you start clicking buttons.