There are many methods to create passive income. One of the easiest ways is to buy dividend stocks of companies that are able to pay you dividend stably. The dividend can be reinvested to purchase additional shares when low price occurs. You may also choose cash other than reinvestment.
Prior to buying dividend stocks, three points should be kept in mind. 1)The company is a healthy and growing business. 2)The company has offered increasingly higher dividends consecutively over the previous 25 years. 3)The price to buy should be reasonable or lower than stock value.
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