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October 8, 2019 7 mins

How Stocks Are the Best Game in Town For Income

When most people think of the stock market, they think of big price swings 

that can make—or lose—a fortune quickly.

While that’s certainly a component to it, smart investors know that price 

moves higher, or capital gains, are just part of the investment equation.

In fact, capital gains are only about half the market’s performance in your 

portfolio over time.

The other half? Income.

The stock market is a place to buy and sell fractions of businesses. Some are 

great, some aren’t. But the successful ones usually like to ensure that their 

owners, the shareholders, receive some of the profits along the way.

That usually comes in the form of a cash payment called a dividend. Most 

companies that pay them do so quarterly, although some do so as little as 

annually, but some do so as often as monthly. There’s a wide variety. 

Best of all, studies have shown that, over the course of an investment 

lifetime, dividend income from your holdings, reinvested into your portfolio, 

can generate as much as half of your portfolio’s total. And, of course, once 

you get into retirement and need a steady stream of income, that cash can 

be diverted away from reinvesting and into your pocket. 

Dividend-paying stocks tend to be steadier and less volatile than smaller, 

faster-growing companies... but they’re also likely to stick around, reducing 

the risk of a big loss. But combine all those factors together when thinking 

about a lifetime of investing, and it’s clear that a focus on dividend-paying 

companies alone in your portfolio will lead to better overall investment 

results.

Not sure the best way to get started?  Follow these simple steps to hit the ground running...
 
Step #1 - Get These FREE Reports:
 
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10 Great Stocks Under $10: https://www.tradingtips.com/10-great-...

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Step #2 - Join Our Premium Advisories:

The Next Superstock: https://reports.tradingtips.com/mirac...

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