It’s possible to earn more without getting a second job. There are hundreds of quality companies which will pay you (in cash) just for holding their shares. A dividend is just that, a cash payment made to shareholders.
For example let’s take a look at Wal-Mart (WMT:NYSE), their annual dividend is currently $1.88 per share. If you own 125 shares you will receive $235 per year in cash that’s 125 shares multiplied by $1.88. Each share costs $78 so you would have to invest $9750 (125 shares x $78) in order to receive $235 in dividends each year.
$235 per year doesn’t sound like much but consider the fact that WMT has raised their dividend consecutively for 39 years. The previous dividend was $1.60 per year and now it’s $1.88 per year. A dividend increase is like getting a salary increase, your income goes up but with stocks all you have to do is continue to own shares.
In 1970 each share of WMT cost $16.50, if you purchased just 100 shares back then, today you would be receiving $385,024 annually in dividends (in cash). Click here for more details on the power of dividend increases at WMT.
Wal-Mart is just one example of a single stock, over the years you’d purchase a number of other stocks from financially healthy companies. Over time dividends do add up, and some dividend investors have been able to quit their day jobs 15-20 years sooner than expected. Learn how to become a dividend value investor and you too can grow your income without getting a second job!
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