This is part 2 of the series on the “4 Market Strategies”.
You can read the first post here
This 2nd part, we will be talking about the 2nd strategy: Dividends!
“#2: Income Focused
Dividends are the focus for this strategy. Again, dividends are cash distributed to shareholders by the company. Personally, I received dividends every quarterly from the companies of which I am holding shares in.
The purpose of this strategy is to create consistent quarterly or yearly income.
In my opinion, this strategy is essential as part of our retirement nest. While a portion of our retirement nest consist of growth stocks, they may not give out a lot of dividends, as they need cash to fund their growth.
Stocks I will watch out for are companies that have been giving out consistent dividend.
Real Estate Investment Trusts (REITs) are one category of stocks that are created to give out consistent dividends. This group of stocks are companies that specializes in purchases properties and renting them out. So as shareholders, it is akin to buying and renting out properties. The only difference is that we can start investing in much smaller amounts and it is also much more liquid. ”
I will be sharing the other 2 strategies in the subsequent posts.
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Mind Kinesis Research Team