High dividend-paying stocks with solid fundamentals are one of the safest and fastest ways to generate a solid return in the stock market.

Here are the top five reasons to own dividend stocks:

1. Dividends cushion the stock price
Yield support of the dividend which is the stock’s annual dividend divided by its share price creates a cushion against selling pressure as the stock price trends lower.
A lower stock price causes a higher yield thereby encouraging value-oriented investors to step in and offset the selling.
During a general downturn of the economy or a major stock market correction, those companies offering safe dividends find themselves better protected relative to the whole market.

2. Dividends protect you from short sellers
Short selling is the selling of a stock that the seller has borrowed from a broker in anticipation that the stock price will go lower. If the price drops, the short seller can buy back the stock at the lower price and make a profit on the difference.
A high dividend protects you from short-sellers, who are more reluctant to borrow money from a broker knowing that they are responsible for paying the dividend to the investor actually owning the stock. This scenario cuts into their potential profits.

3. Dividends generate quarterly income
The income you can receive from a decent yield can be significant, especially for retirees. A big advantage is that the taxes paid on dividend income are lower than those paid for earned income.

4. You can benefit from accidental high yielders
After a market crash some companies offering small, safe dividends end up with high dividend yields because the stock price has dropped dramatically.
Look for those accidental high yielders that provide more than 4 percent.

5. Dividends can grow your money faster
Dividend-yielding stocks make most sense in your IRA or 401(k) retirement portfolio where you can re-invest your payouts and let them compound tax-free for decades. Not only do you benefit from capital appreciation of a “best-of-breed” stock over time, but you also typically receive a quarterly income from the dividend.

For the active investor looking for a reasonable level of safety of principal with the upside potential to earn a little more from your investment, then exploring the world of dividend-producing stocks is worth the little effort involved.

I encourage you to get started today in finding those great stocks that have the potential to produce consistently high returns for you.

Join us today by investing in your education at http://stockinvestingsimplified.com.

Disclaimer: Any information shared on Stock Investing Simplified does not constitute financial advice. Stock Investing Simplified is not a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities readers or customers should buy or sell for themselves. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser.

Duration : 0:3:9

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The best strategy for you is via a portfolio of Unit Trust or OEICS. These give you access to markets that an individual investor would have no hope in accessing. You should also speak to an Independent Financial Adviser.

lately I have had an interest in investing into the stock market after a friend explained to me something about setting up an account with a broker that would buy and sell for you at a given dollar amounts.

what was explained to me was if I were to invest and buy 100 shares from a company at say 12.00 per share, then sell when the shares rise to 13.00. then when they drop, buy into the same company again using all the money from the shares sold. it was explained to me that I could do this several times in one day having a broker watching the stocks in real time. if those 100 shares were to sell and buy once a day for a full month, the profit could be close to $3000 minus the broker and trading fees. I’m not sure how all this works, nor how to avoid having to pay taxes for each time they are sold. my friend thought is was something like keeping the money and stocks in a liquid form! to where I would only have to pay taxes on the money when I withdrew some of all from the broker.

Can anyone shed some light on this and if it’s a good idea as an income boost. also who would be a recommended broker! I do have an account with etrade but not sure they can do something like this.

Doing what you say will of course make money. The trick is to know when to buy at the low and when to sell at the high. Not too many people can do this successfully and regularly, not even the professionals and "experts".

Isn’t that what everyone wants to do?

Actually, it would be very difficult to do what you say, because of Day trader rules, and Margin rules, and the 3 day settlement rules. Just go look them up to see what I mean.

As as added fact, the commissions each trade would take away a fair % of your gain. And don’t forget that the commissions apply even if you lose on a trade, thereby exacerbating your losses.

Along with a career as the primary income, what do most Americans do as a secondary form of income? Is Stock Investing good? What else is there?

Long term, yes – it is one of the best. But short term it is far more risky, in fact it is more speculating than anything else – which is very hazardous, and most people lose at. If you want to supplement your income, then look into some bond funds. Government bonds are safer but now pay very little – look into something like Corporate grade investor bond funds, or High Yield Corporate bond funds. Bonds are much safer than stocks, and better at stable income production. Like everything else though, more reward means more risk.

Episode 8: Double Bottom Chart Patterns – Catching Stocks on the Rebound

More Trading Tips for Stock Traders at: http://www.TradingTips.com.

Become a Successful Trader In Less Than 5 Minutes per Week.

Duration : 0:5:13

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