Are you ready to create an extra source of income without adding another task to your to-do list?

It’s simple; start taking advantage of dividend income.

Grab your copy of “Dividends Are a Queen’s Best Friend” if you’re ready to start your investing journey today!

What are Dividends?

It’s the money that companies pay you as a reward for investing in them. Dividends give you access to a portion of a company’s earnings. If the company profits, you profit. Publicly-traded companies release their earnings quarterly and let their shareholders know if they plan to declare a dividend and how much the payout will be per share.

How Do You Earn Dividends?

You have to invest in companies that give dividends to their shareholders. If you want to invest in companies that have a track record of giving dividends, take a look at the dividend all-stars. These are elite dividend stocks with years of dividend increases. Two examples of dividend all-stars are Walmart (WMT) and McDonald’s (MCD).

Is Dividend Investing Risky?

It’s risky if you don’t know what you are doing. Talk to a financial coach who specializes in dividend investments to mitigate your risk. I’m here for you if you need me! 

Dividend stocks aren’t as risky as conventional stock investments; it gives investors the flexibility of safety and growth. It’s like a hybrid investment. You get to enjoy the benefits of stock growth while earning monthly or quarterly income in the form of dividends.

Typically, if the price of a stock falls, the company will still pay out a dividend. Companies know that they may lose investors if they cut the dividend so that is an incentive to keep the dividend going. Companies don’t want shareholders selling shares of stock so they will do whatever it takes to keep investors happy.

Benefit from the Hard Work of Employees

Do you want to become a boss without adding on any additional responsibilities? Become a shareholder. You may not get the corner office with the window view, but you’ll be able to fly anywhere around the world and create your own scenery.

Employees of a corporation work hard to make you money so you can have more time to do the things you love. Working women work hard. Wealthy women work smart.

Gain Access to Dividends With $100

You don’t need thousands of dollars to benefit from dividend investing. Every step you take counts. If you start with just $5, you’ll grow your money and knowledge so that you can invest more.

When you’re ready to start investing, all you have to do is open a brokerage account. I opened a WeBull account in 2019 to test out the functionality and I love the paper trading competitions and resources! You also get two free stocks when you open an account! 

Learn more about WeBull here and claim your free stocks. 

Start your dividend portfolio as early as you can. The earlier you start, the more time you’ll have to grow your money. When you enhance your investing skills and work with someone who can do all the research for you, you’ll have additional funds available to pay your monthly expenses, travel the world, retire early, and live a life on your terms.

Ready to Learn More about Dividend Investing?

Grab your copy of “Dividends Are a Queen’s Best Friend” on Amazon. It’s the perfect book for beginning investors. Forget the intimidating lingo and have a fun, female-friendly conversation with Charlene that will give you the courage to do what you once thought was impossible.

Leave a book review on Amazon and tag @wealthywomendaily in your picture with the book!

Sign up below to get on the list for Wealthy Women Weekly. Let us know what you would like to learn.

Disclaimer: Wealthy Women Daily is solely educational and informational, and is not intended to give investment or trading advice of any kind. Not all asset classes are suitable for all investors. Wealthy Women Daily is a research academy that provides you with the data and analysis you need to make an informed investment decision. 

For most Americans, the biggest expense you have to deal with are taxes. If your main source of income is earned through wages, you’re paying a high tax bill.

So how can you reduce your tax bill and keep more money in your pockets.

You can diversify your income, be strategic about where your money goes, and hire a trusted CPA who specializes in tax planning to ensure that you are maximizing your deductions and minimizing your “taxable” income. That’s exactly what the world’s wealthiest class of women do. They pay less than 25% of their money in taxes, leaving them with more money to grow their financial power.

Here’s what the wealthy do, and a few reasons why you should try it too:

They Prove that They Should Pay Less Taxes 

The court of law says that “it didn’t happen if you can’t prove it”.

Wealthy people keep great records that show the inflows and outflows of cash. They use systems like QuickBooks to organize their finances. So when tax time arrives, they call up their accountant to review their QuickBooks transactions. All the information is available at the tap of a button, allowing them to quickly scan deductible expenses instead of playing the guessing game.

The guessing game is risky. If you guess to low, you’re paying higher in taxes and keeping less money. If you guess too high and it appears unreasonable, you’ll probably be subject to an audit.

Do you need help tracking your income and expenses? Let a money professional do it. You can hire a certified QuickBooks advisor to help you save time and money.

They Diversify their Income 

All income is not taxed equally. And that’s a great thing for individuals who understand the different types of income and how to capitalize from each one.

You have earned, passive, and portfolio income. Different types of income are subject to different tax requirements and percentages.

Wages are a source of earned income. This is the money you receive from your employer or a business you own. You have to pay an income tax on all the money you earn from a job.

If you are single and your taxable income is over $500,001, you are in the 37% tax bracket.  That’s an expensive tax bill if that’s your sole source of income.

So you diversify your income through real estate investing, dividend growth investing, and other passive and portfolio income strategies. Income from other activities is typically taxed lower than your ordinary income (if you know the rules to the game). For example, gains from long-term stock are taxed at a lower rate than ordinary income.

They Own Businesses 

Entrepreneurship is a wealth building vehicle that many wealthy women take advantage of. And there are a ton of benefits for setting up different types of legal entities.

Trump’s Tax Reform Law drastically changed the tax rules that many have followed for decades. And for the small percentage of wealthy americans, these changes work in your favor if you own a business.

If you own a profitable corporation, you’ll see a decline in your tax bill, going from a former top tax rate of 37% to a flat rate of 21%.

If you own a pass-through entity (LLC, S Corp, Partnership), you can receive a deduction of up to 20% on “qualified business income’.

Talk to a tax professional to determine how the new laws will impact your business. If you don’t have a business yet, talk to a professional to understand how a business will benefit your personal finances.