The power of dividend paying stocks

  

   We shouldn't forget the power of a dividend paying stock. A three percent dividend sounds very boring at first, let's take another look. If we purchased 50 shares of a stock priced at $20 paying a dividend of $0.60 a share annually that means it yields three percent. Mathematically that's $0.60 X 50 = $30 on our $1000 investment. Most companies raise this dividend over time. Many companies have a track record of raising dividends for twenty years in a row. We make money if the stock price goes up, and we make money on the dividend over time. Big gains are made when both happen over time. When stock prices increase in value companies usually increase their dividends to keep their yields in line with competitors. If our stock purchase above increased in value to say $30 a share over a period of time and increased its dividend to keep the yield at around three percent it would now pay $0.90 per share. The yield on our original investment is now 4 1/2 percent not 3 percent. Mathematically that's $0.90 X 50 = $45 annually on our $1000 investment. Do some research and invest only in companies that have a record of increasing their divided over time. Don't forget to tell Finwiz what you find.