DIVIDEND STOCK INVESTING 📈 Pro's and Con's of Dividend Stocks

MY EBOOK! http://www.ryanoscribner.com/stock-trading What are the pros and cons of owning dividend stocks? I had someone reach out to me and ask me to explain this. I only own one dividend stock and it is a utility stock. I also receive dividends from my mutual fund, which includes dividend stocks in the blend. So, if you are looking to invest in dividend stocks what are the pros and cons of doing this? PRO: Shareholders can take a consistent income from the stock market. CON: A dividend can be increased, reduced or eliminated at any time. PRO: Profitable companies frequently increase dividends. CON: Companies that pay high dividends are usually old school industries and utilities and this does not provide adequate diversification. PRO: More stable companies have dividends and this means significantly less volatility. CON: Faster growing small cap stocks with more upside potential rarely pay dividends. PRO: Dividend stocks tend to hold up better in a down market because most investors are in it for the long term and understand market correction. CON: Lag in performance and growth compared to many other stocks. PRO: They are more tax efficient than bonds or other ordinary income because they are taxed at a lower rate. CON: Riskier than a high quality bond. PRO: Investors can be paid in two way; stock price and dividends. CON: High dividends can be misleading to investors. PRO: Dividends allow you to hedge your bet. The stock can fall 4%, but if it pays 3% in dividends you have only lost 1% on your investment. CON: Tax rates for dividends can change at any time. PRO: Allows you to take advantage of compounding. CON: Slow growth, long term investment (may be a con for some, and a pro for others). PRO: Dividend stocks are inflation resistant because as prices rise the profits of a company rise as well. Dividends are based off company profits so the dividends rise. There you have it, the pros and cons of dividend stocks. I think they are a good investment for someone who is looking to get their feet wet in the stock market without getting overwhelmed. However, for many of us they just don’t offer much appeal. Website http://www.ryanoscribner.com Follow me on Twitter! https://twitter.com/RyanOScribner Facebook! https://www.facebook.com/ryanoscribner/ Personal Fitness Coaching http://www.ryanoscribner.com/shop Related Videos: Dividend Investing! - Dividend Stocks! https://www.youtube.com/watch?v=KfbK1QBTAlI 5 Stocks that pay SICK Dividends! https://www.youtube.com/watch?v=cqW3Iv3UVqo Related Articles: The Pros and Cons of Dividend Stocks http://money.usnews.com/money/blogs/on-retirement/2014/04/08/the-pros-and-cons-of-dividend-stocks THE ADVANTAGES OF DIVIDEND STOCKS http://www.dummies.com/personal-finance/investing/stocks-trading/the-advantages-of-dividend-stocks/ THE DISADVANTAGES OF DIVIDEND STOCKS http://www.dummies.com/personal-finance/investing/stocks-trading/the-disadvantages-of-dividend-stocks/ If this video brought value to you, please leave a like! If you are looking to find out more about anything I discussed, drop me a comment or contact me on Twitter. Subscribe to be updated on my journey through life! About Me: My name is Ryan Scribner. I am a nutrition and fitness crusader and I consider myself to be a life student of personal development. I am also an investor. I went from being an overweight college student to living at 8% body fat. About two years ago when I started weight lifting, I was completely clueless. I never played sports in high school and I had no base level of fitness established. I made many mistakes, but over time I developed an understanding. I want to help others develop the body, spirit and mind they deserve. In making mistakes along the way and learning from scratch, I have a lot of value to bring to the table. I recommend my content to those interested in the accumulation of wealth, fitness and nutrition as well as personal growth and development. Recently, I made my own happiness a priority after living with depression for over a year. I want to share with you exactly what I did to get to a state of perpetual lasting happiness. I have also spent a great deal of time learning about investment and wealth accumulation. While money alone doesn't bring happiness, it allows you to experience many things which do bring happiness. Start the journey. Involve the right mentors and coaches. Learn.

Comments

1. Great job young man keep up the good work, I got a little excited today, I'm kind of new to the stock market, but I got my first dividend payment lol.
2. Can you comment or make a video on buying stock just before the exdate and selling it right after record date? Is this good or bad? I just got into AT&T a couple of days ago, and their exdate is April 6th and record date is April 10th. Dont know if its a risk to sell right after.
3. video on money market bank account
4. Hey Ryan! @ryanscriber What platform online would you recommend for investing in stocks? I've done a bit of research and am leaning towards Questrade. What's your opinion? Also, I'm in Canada, if that makes much of a difference. Thanks!!!
5. I would like you to talk about REIT stocks cause some of these stocks dividend yields are unreal I feel like I'm missing something I've talked to a few of my peers and I still can't quite understand why people would invest in REITs. Some of these tickers are even monthly compounding.
6. Dividend stock grow slowly? Friday KHC up over 10% in 1 day for getting turned down on a merger attempt.
7. I get paid 8 to 16% monthly dividends from DIV.to DIVERSIFIED ROYALTY CORP, DIVIDEND 15 SPLIT CORP. (DFN and 3 other income stocks .. and all profrotfs are tax free because of the TSFA in canada
8. Video starts @1:46. Intro is garbage.
9. Not sure if you have made a video on it before but how do you decide what stocks are worth investing in?
10. how often do you get paid off your investment?