To the average person the world of finance is a scary place. Outside of daily banking many have no clue of what the investing world has to offer unless the paid attention in college. In any business the key is growth just as with money. The one thing everyone can agree on is how to extend your cash flow or value when it comes to financial success. Much like interest on a bank account there are other avenues in investing that can help contribute to the increase in value.
We should all be familiar with the stock markets and how they work. Individual stock purchase is not a new thing. The focus for many investors when looking for a company to invest in are which stocks are paying a healthy dividend. Stock dividends are payment or compensation that a company pays to shareholders for purchasing a piece of their company. It is considered a way to show appreciation for believing in the company of purchase. As the company grows in wealth so do the people that invest with them. This has become a very important asset in investing and wealth building.
Dividends come in two forms which are stock dividends and cash dividends. While both can be considered cash the stock dividend are given as reinvested shares of the company. This means the money that would be given is used to purchase more of the company’s stock and expanding your shares to gain more as the company price increase. The cash dividend means the company pays a set price per share and that money is given to you in cash rather than be reinvested. Both are great for the investor depending on what you are looking for from your investment. Some who want growth go with a stock dividend. This allows them to have their free money reinvested to work for them. If they need cash they will sell the shares and cash out. The cash dividend is great for people who are trying to generate income. This allows them to supplement an income stream to help with their personal lives. The cash method does not have money working for the investor through the company anymore but it may be needed elsewhere.
Trying to understand which to go with can be confusing for some people. There are companies like Securities-reearch.com who can help you become more informed. This company teaches how to read stock charts, stock fundamentals and tech analysis. SRC has over two decades in research and chart reading and has become a reliable source in the financial industry. Many people follow the professionals and this company provides tools for those professionals and now for the average investor.