Dividend Investing, An Alternative To Savings Accounts

Dividend investing involves investing in stocks, mutual funds, or ETFs that pay dividends. Recently, I’ve started to move cash out of a savings account and into stocks that have really high dividend yields. The result is that I’m earning more than 5% just on dividends alone. Why have I made this change? Dismal interest rates.

Like any investment, investing in stocks that pay dividends is no sure thing. For example, a company may have a high dividend yield thanks to a low stock price that reflects a company on the decline. If earnings begin to dwindle, it’s very likely that the company will lower dividend payments. And in some extreme cases, my stop paying any dividends at all.

Source: Dough Roller

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