Before you go out and purchase your first dividend stock, there's a few things you need to understand.
The COVID–19 pandemic has shown us just how fragile our economy can be. But, building a diversified portfolio of stocks can get you paid, rain or shine. It's important to know how to evaluate your dividend stocks. Not every company offering dividend stocks can maintain a dividend payout in every economic environment.
Almost everyone seems to be trying to find ways to improve their financial life. This is just one of the ways we've found that worked for us.
Investing in the stock market can change your life for the better, and the sooner you start, the more you'll have in your investing account in the long run.
But so many people mistakenly think that you need thousands of dollars in the bank before their can start investing. The fact is, even if you only have a small amount, you can start investing.
With as little as a $100 you can get on the path toward long–term financial security and build up a nest egg that you'll be able to tap whenever you need it. It's understandable if your first thought was to start by taking your $100 and buying small amounts of stock. But a lot of people don't understand how important it is to also have a strong margin of safety with their finances. For most of us, the best way to get that margin of safety is by having cash available.
So it's important that you build a strong margin of safety for yourself and your family first!