Hoco
Regular Member
- Apr 14, 2017
- 429
- 166
If you want to invest over time and accumulate shares or receive dividends; have a look at companies that pay out dividends with a strong balance sheet and sustainable profits in an industry where demand isn't seasonal.
You can use a website like Finviz to grab the info.
For long term it's important NOT to find the highest yielding companies as most of them use Dividends as a promotion to get more investors in.
By looking for these companies you can build a balanced portfolio with a yield that is better than the interest rates + capital growth prospects + some companies offer share holder perks like discounts on products and stuff like that.
With the yield, you then have two options - receive a dividend each quarter/year or reinvest the dividend into more shares.
Naturally, with all investments there is risk and companies can stop paying dividends.
If you don't fancy doing it yourself, there are hundreds of ETFs/Funds out there that specialise in this. Though most fund managers don't exactly have great frameworks behind them.
At the end of the day, as long as you have a yield above the rate of inflation + highest bank interest rates on the market - you are performing well.
You can use a website like Finviz to grab the info.
For long term it's important NOT to find the highest yielding companies as most of them use Dividends as a promotion to get more investors in.
By looking for these companies you can build a balanced portfolio with a yield that is better than the interest rates + capital growth prospects + some companies offer share holder perks like discounts on products and stuff like that.
With the yield, you then have two options - receive a dividend each quarter/year or reinvest the dividend into more shares.
Naturally, with all investments there is risk and companies can stop paying dividends.
If you don't fancy doing it yourself, there are hundreds of ETFs/Funds out there that specialise in this. Though most fund managers don't exactly have great frameworks behind them.
At the end of the day, as long as you have a yield above the rate of inflation + highest bank interest rates on the market - you are performing well.