Investing for Dividends
Investing for Dividends is known as Investing for cashflow. Here you invest in the stock market for cashflow rather than the capital gains. Most of the people lose money in the stock market because they invest for the capital gains while smart investors are those who invest for the cashflow.
In fact, there are several people around the world who have worked hard for 10 years day and night and build the portfolio of Dividend paying stocks and today they are enjoying their early retirement while travelling the world.
The main advantage of dividend income is that, it is a tax free income. Because the company has to pay Dividend Distribution Tax (DDT) which is very low in comparison with Income tax. Thus, building your own Dividend paying stocks portfolio is a wise financial decision if you want to retire early.
Now, the only key of building the successful Dividend Portfolio is – Start Early.
Yes, This is the 95% advise that anyone needs. You will find a list of dividend paying stocks on any website on the internet but to make it a winning portfolio on which you can live for the rest of your life, you need to Start Early because than and only the compound interest will work on your portfolio more to make you rich.
If you want to retire early or retire with financial freedom than Investing for Dividend is a sound financial strategy. Rather than investing for only capital gains, you should go for this way. This is because in this strategy, even if the stock prices fluctuates, you will still receive a Dividend Income from your Investment which you don’t receive if you invest only in Growth Stocks only for Capital Gains.
So Invest for the Cashflow (Dividends) Stocks and enjoy the steady passive income.