Dividend Stocks: Why Are These A Worth-Investing Option?

1. Dividend Stocks: Why Are These A Worth-Investing Option? Dividend stocks are a key component that can boost your overall investing returns. Let’s look at some benefits of dividend stocks. TradeZero 204 Church Street SandyPort West Bay Street Nassau Bahamas

2. To stabilize investment portfolios and receive passive income, business owners can offer dividend stocks, which are really positive indications of the health of a company. The payout of a portion of a company’s earnings to eligible shareholders is referred to as dividends, which are a key component of stock market returns. As people get experienced in trading, the lure of dividend stocks is too hard to resist. But is it a worth investing option? Let’s look at some benefits of dividend stocks: •Dividend Stocks Are Special: Companies that pay dividends have always enjoyed priority over the non-dividend-paying ones because of the advantages offered for investors. Typically issued by publicly traded companies, paying dividends indicate profitability. That is, when a company pays regular dividends, potential investors get the feeling that the company has a sustainable business model. •Investors Can Stay Calm: Generally, Investors could get worried or unnerved when stock market corrections cause downward moves. But the regular dividends protect investors from such downsides and would keep them from making hasty decisions. With a regular payout that dividends offer, existing investors can stay calm. •Dividends Can Be Paid on a Monthly, Quarterly or Yearly Basis: Generally, a dividend is determined by a company's board of directors. They will meet to review the financials and determine if a dividend is warranted or not. Once they determine it is warranted, the company's board of directors will approve it, and would declare the dividend, the size of the dividend, the record day and payment date. There are two main types of dividends: regular and special dividends. Regular www.tradezero.co +1-954-944-3885

3. dividends are paid to shareholders consistently over time whereas special dividends are "one-off" payments that are paid after particularly profitable quarters or the sale of an expensive asset. Generally, dividends can be paid as cash distributions to eligible shareholders on a monthly, quarterly or yearly basis. •Reinvesting Payouts: Through a Drip (dividend reinvestment plan), you can also reinvest payouts into dividend-paying stock shares. Because, the more you reinvest in more shares of the dividend paying stock, the larger is the size of your dividend payout; with an increasing payout you have a lot more cash to buy more shares, and your earnings keep rising. •Safe and Reliable: It is generally a safe and reliable way to gain income from stocks. Dividend investing has a two-pronged approach: recurring dividend payments and capital appreciation – both reward investors. That is, with recurring dividend payments, when you invest in dividends, you receive payments for as long as the company can support them, regardless of whether the company's stock price is up or down. Capital appreciation - which is the increase in price or value of a company's assets - can also provide a stable flow of income. However, while looking for dividend stocks, look for businesses with really positive credit ratings such as AAA credit rating. For instance, Standard & Poor’s mentions Johnson & Johnson ($JNJ) as having AAA credit rating, one of just two companies traded publicly to bear this rating that even tops the AA rating the US government has. It’s a clear indication that Johnson & Johnson is more than capable of growing its business and repaying its debt, which means www.tradezero.co +1-954-944-3885

4. it could keep making dividend payouts and has indeed been raising it consecutively for 57 years. To know more about such stocks and to make informed trading decisions, utilize the advanced direct access trading platforms provided by TradeZero. Get in touch with us at 1 954-944-3885 for more information, or send an email to support@tradezero.co. www.tradezero.co +1-954-944-3885