Stocks

Things You Should Know About Monthly Dividend Stocks

Contribute consistently and you could retire early.

Person Holding 100 Us Dollar Banknotes

One of my favorite things about a dividend stocks is that they can fast track your way to early retirement. I used to think that you had to be a financial guru to become a millionaire. Now I’m realizing not so much. All it really takes is the opportunity to invest over a long period of time and you’re set. I plan on contributing fo as long as I possibly can and I’m not ashamed. Compound interest is the cheat code of all financial awareness playbooks and the sooner you understand that the better off you’ll be.

That check only gets bigger.

Top view of opened envelope with USA banknotes of 20 dollars placed on white marble desk illustrating concept of money gift or charity

Sounds a little cryptic I know but its only because its true. The more you allocate towards your dividend portfolio, the more your harvest will grow! By contributing monthly your portfolio will grow which will increase your dividend payout and reinvestment. Its almost like watering a tree everyday and replanting the seeds to grow a new tree while the first one grows. If you did that once a month imagine how many trees you’d have after 20 years? Sounds like you’d have a forest if you ask me.

Without a Roth IRA expect a larger tax bill.

Tax Return Form and Notebooks on the Table

Dividend income is the 9th wonder of the world. But what a lot of people don’t know is that dividends can get taxed at a higher rate if you keep them in a regular brokerage account. Now I’m no financial advisor so you should definitely speak with a professional, however from what I do know through my experience, I have saved more money in taxes by investing in a Roth IRA rather than solely a 401k. Now don’t get me wrong, I’m not anti-401k by any means. I just know a solid deal when I see one. So I’ll just leave it to you to decide.

You get what you put in.

Hands Holding a 10 Dollar Bill

Similar to most investing principals you truly reap the most based on what you put in. Now I’m not gonna lie, investing isn’t for everyone. So don’t go throwing every dollar at your portfolio assuming that’s going to make you rich. Researching the best companies is the best way to keep a healthy portfolio so understand that you reap what you sow financially.

How do you feel about dividend stocks?