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If you lost your job as an employee or lost your most profitable clients as an entrepreneur, how would you survive?
You need to position yourself to bring in monthly income no matter what comes your way. While you have a good job and/or lucrative clients by your side, make sure you are allocating an appropriate amount to building your dividend portfolio. This small step can save you years of stress later.
How Do You Receive Dividend Income?
Dividend income is what you receive when you invest in a publicly-listed or privately held company such as Apple (Nasdaq: AAPL) or Walmart (NYSE: WMT).
You are essentially giving a company more money to run their business. Some companies thank you for your investment by providing you with monthly or quarterly income that are classified as “dividends”.
In order to gain access to these dividends, you have to buy stock through a brokerage account like Robinhood.
How Often Can You Receive Dividend Income?
Most companies pay dividends on a quarterly basis. But there are some companies that pay dividends monthly.
In order to receive dividend income, you must own shares of stock by the ex-dividend date provided by the company.
You can check a company’s investor relations page to find out about dividend increases and when dividends will be paid to investors.
Just think about it. You can start receiving dividend income in your account while you are vacationing
Who Pays Monthly Dividends?
Not every company pays a monthly dividend. To determine which companies pay monthly dividends, you have to access their dividend payout history. This information will show you how much the company paid in dividends and when they paid their last dividend. When you become familiar with certain industries, you’ll notice trends in the market and will be able to identify the type of companies that have sufficient income flowing into their accounts every month. If they have a steady stash of cash coming in every month, tit is likely that the company can pass the cash on to you as an investor.
When exploring your monthly dividend options, you may also want to consider these things:
- Will you have to pay taxes on your dividend income? If so, how much?
- Will this company cease monthly dividend payments during an economic downturn?
- How long has the company been providing monthly dividends and is it a reliable source of income?
Doing this type of research can be a time consuming process when there are over 500 companies to choose from. If you would like to learn more about monthly dividends, you can subscribe to Wealthy Women Weekly below, join one of our webinars, or sign up for an income strategy session by emailing us at editor@wealthywomendaily.com.
