Stock Investing Strategies

Stock investments

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Investing For Income in the Long Term

There are a lot of long term advantages that come with stock market investing. But it is also a perfect way to produce an ever increasing passive income.

So, how can you create some extra income over the long term using the stock market? Some companies offer dividend paying stocks. When a stock pays a dividend it basically pays out a percentage of their income to their investors based off of things like the stock price and the number of shares that each investor holds.

By getting into great dividend paying stocks an investor can successful make a small income for themselves without having to try and do anything fancy. Unfortunately the bad thing about this strategy is that it takes a lot of money to make money. If the stock’s annual dividend yield is 5% then you would need to invest 20 times your desired annual income in order to receive it.

If you wanted to make $100,000 a year off of dividends then you would need to invest $2,000,000. This is a large amount for most beganer investors. But this does not mean that it is unobtainable.

The market is filled with bulls markets and stock crashes. But in general strong stocks go up over a long term time frame.

Dividends also increase as you create more and more money for yourself. So one great way to save up for retirement is to put aside some money every month for the stock market and learn to pick great stocks.

After 15 or 20 years you may just be making enough money to live off of. It isn’t a glamorous get rich quick scheme, but does have the potential to get people to retirement much sooner than almost anything else. That is unless you luck out and stumble upon a large fortune.

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