Passive income is in fashion again, and these dividend stocks can provide a high monthly payout
Speculation is running rampant in the market, and while the
future isn’t certain, chances are the phenomenon will end. It really comes down
to the scarcity argument. If everyone’s bidding up real estate and
cryptocurrencies, for instance, very few resources are left to support
equities. That’s why investors ought to consider safer investments like
dividend stocks.
More specifically, people should look into funds and
companies that offer monthly payouts. Monthly dividend stocks are popular with
the passive income crowd because society revolves around a 30-day schedule.
Whether you’re talking payments for a car, utilities or other obligations,
they’re more often than not on a monthly schedule.
Monthly dividend stocks are also generally stable. When
bouts of volatility impact the broader markets, they hold their value better
than growth names. Of course, that’s not to say that dividend payers are immune
from red ink. But issuing companies are typically more mature and thus don’t
attract extreme fluctuations in either direction.
Finally, monthly dividend stocks offer a balancing effect
for retail investors. Almost always, you are at a disadvantage when you trade
against Wall Street pros. The big hedge funds have seemingly unlimited
resources (at least, relative to you) which they can deploy at will. Also,
professional traders have the financial capital to absorb hefty initial losses
to drive you out of the market.
But when you bet on funds and institutions that provide a
regular payout, you’re guaranteed to win something in what is otherwise a
zero-sum game. As the market gets frenetic, now is an excellent time to
consider these monthly dividend stocks:
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