First of all if you can invest 250 dollars per month then I will show you a way to make your money work for you. You can be assured that the your money will make money from day one because this a system of dividends. how to invest in dividend stocks with little money? Well the whole internet is filled with information on what is a dividend? What is high dividend etc. but there is no one telling you how to invest in dividend stocks. How to protect your money from crash? how to invest in dividend stocks with little money? How to regularly receive income from first month of investment? How to make money make money? Let your money work for you because this simple guide will give you quick start.
Most of all key to invest successfully with little money is to invest regularly. Repeating the instruction one more time because you have register it. Regular small investments go long way than investing big amounts at one time. In order to invest and receive your dividends, plan on investing at regularly; every 2 weeks or 4 weeks will be your choice and most noteworthy your money situation. Minimum investment to start as of March 2017 is 250 dollars per investment.
I struggled for 20 years to come up with a strategy to invest in high dividend paying stocks. Finally I found the one that is actually working. As a result of long research, I created a Mutual fund of funds that could provide safety, Income and simple way to invest costing very little in investment fees.
Step 1: Understand the basics on investing in stocksDividend is paid for owing a stock or ETFStock is listed for one company hence investment in one stock is risky even though it pays dividendDividend paying ETF is a safe choice because it invests in many stocks that pay dividendYou can not trust single ETF or single stock because you will never exactly know what is happening inside the company or ETFYou have to be cautious all the time because your investment could significantly lose value under bear(falling) market conditionsThere is not much logic for rising or falling of stock price. It will purely depend upon current market conditionStock/ETF price will change everyday. It is always volatile and you may not be able to understand why it is changing everyday. It does change and that is the realityIf you regularly buy every 2 weeks or 4 weeks you will have opportunity to buy lower or you may buy at higher price.Dividends will be taxed based on your holding periodYour money is always yours so you can sell the holding anytime and get your current market value that will be different than what you paid for.
Step 2: How to invest in dividend stocks with Power of averagingStock price and Stock dividends are different thingsWhen you buy you pay the price of stocks. Dividends are paid at company decided rate so your purchase price does not impact dividend.Let's say you begin your purchasing cycle with 250 dollars each 4 weeks then you will buy stocks at different price each 4 weeks. For example purchase price 10, 11, 9, 8, 7, 9 , 10 etc.
Following Table illustrates the investment of 250 dollars at regular periodsIf you carefully study this table you might think that you invested 1750 dollars over a period of 7 months but account value is on 1757. So you total gain is only 7 dollars. Here is the key to this investment, you have already received dividend dollars of 63.58 dollars. So you have actually made 63.58 + 7 = 70 dollars on your investmentDo you see the magic in this investment? Your money is working from day one. There is many occasions where you bought less shares for higher price and there are many occasions where you bought more shares at lower price as shown in 5th month.If you continue this process for few years eventually you will start making so much money that you don't have to fund your account from your pocket, the dividend generated will be enough to pay the next month's installments
Step 3: Understand and Manage RiskNo single stock to ETF is ever safe. No matter what the world tells you about. You should not trust the stock market because it can over extend in any direction it wants. We confuse stock market with values, earnings etc but in real life market is demand and supply. I have a complete book written on this demand supply dynamics available for sale on world's most popular and trusted Amazon Six Pack Financial YogaPrices will go up and down all the timeTo Manage riskInvesting at regular intervals will be great idea.Invest in ETF that pay high dividendsInvest in many ETF that pay high dividends
Step 4: Understand and Manage RiskNo single stock to ETF is ever safe. No matter what the world tells you any single investment is not enough safetyIn uptrending market everything goes up and keeps going up. It does not stop going up.In downtrending market everything goes down and keeps going down. It does not stop going down.Trends last long term that is why it's called trendTrends do change over a period of time. It goes from up to downtrend and from down to uptrend. There will be few months where the trend will be flat called sideways. But be assured market will keep moving. That's the nature of market.
Step 5: Pick the Best and Invest in all of them with MOTIFMOTIF is collection of 30 stocks that you can buy for just 250 dollars with minimum investment. So your 250 dollars will purchase all 30 stocks with equal amount divided in all 30 stocks. Imagine what that does to you. It distributes your risk among all these ETFs. These pre-selected ETFs are further investing in many individual stocks. So your each dollar is diversified into multiple investments making it crash proof for you.You have ability to pick top dividend paying ETF and invest in all of them at the same time.You need account created in website www.motifinvesting.comIf you are newbie on how to invest in dividend stocks?
Follow the steps below to create your new investment account