What type of stock investment is the best?

The best stock to own are stocks that pay you cash to own them. These stocks are called dividend stocks.

Dividends are cash payments paid to you for owning that specific stock. Stockholders receive payments monthly, quarterly or annually. This type of investing provides growth without having to sell the stock to get a return on investment. This method is an example of “Buy and Hold Investing “which means the more shares you hold the larger the dividend payment each payment cycle. The advantages of dividend stocks are that over time the dividends cash may be used for other purposes. This cash could be used to pay bills without having to sell any of the stock that is generating the dividend. This type of buy and hold of dividend stocks is perfect for young investors who do not have large amounts of disposable income. It is also ideal for seniors with existing retirement plans who wish to have an additional revenue stream to augment their current retirement income. The dividend could be reinvested back into the same stock giving the investor the greatest tool of investing - Compounding. Compound interest is money that is earning interest on interest. This is the most powerful mathematical tool you need to create stellar investment results.

Ask The Mailman Tip:

 If you have stocks or mutual funds in your retirement account you can convert those stocks into stocks that will pay you a dividend. This will allow you to access money from your retirement account without having to sell any your stocks. This is especially helpful when the market is down.

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