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Want to Make Money Regularly? Learn How with Dividends

September 28, 2017
103 Shares 2,305 Views

You often hear about how people are making money every month without working, but how is that possible? Most of these passive income schemes can require a lot of set up to execute. For those who are interested in building their stock portfolios while also gaining a quarterly income engine, look no farther than well performing dividend stocks.

If you don’t know what dividends are, Investopedia explains them like this:

A dividend is a distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property. The dividend rate may be quoted in terms of the dollar amount each share receives (dividends per share, or DPS), or It can also be quoted in terms of a percent of the current market price, which is referred to as the dividend yield.

In other words, owners of a stock that qualify for a dividend make money by virtue of owning the stock. Often times companies that pay high dividends are blue chip stock. These types of investments are therefore very attractive for investors who are looking to add some solid companies to their investment portfolio.

So where do you start? Here is a list of five dividend stocks recommended by YouTube’s Financial Education. Don’t let the gawking thumbnail fool you, there are some solid ideas you can find in this video.:

If you want to read Investopedia’s dividend lesson, click here.

For a link to Financial Education’s video, click here.

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