From Cash To Dividend Stocks: Building A Retirement Portfolio Step By Step

From Cash To Dividend Stocks: Building A Retirement Portfolio Step By Step

A couple of weeks ago, I received an email from one of my readers. He was in a delicate situation: he was 100% in cash and wondered where to start in order to build his retirement portfolio. We exchanged a few emails and I agreed with him that many … Continue reading at seekingalpha.com

Why Getting Valuation Right Is Important to Retired Dividend Growth Investors

Although getting valuation right before you buy a stock is critically important to the long-term oriented retired dividend growth investor, it is not a short-term market timing concept. My point is that short-term market movements are typically volatile … Continue reading at gurufocus.com

5 Excellent Income Stocks to Buy Now

Is now the time for dividend investing? While the dividend investing style is almost always overlooked, it still has a place in many portfolios even though many consider it a ‘boring’ way to growth wealth in a portfolio. Sure investors often prefer growth … Continue reading at zacks.com

Stock Market Investing

Forget Altria, These Are the Best Dividend Stocks to Own

Though Altria Group (NYSE:MO) operates in the challenging U.S. tobacco industry, thanks to cigarette volume remaining in secular decline, the company controls roughly 50% of the U.S. cigarette market and continues to dish out a dividend yield of nearly 4%. Continue reading at fool.com

The five best dividend stocks for 2016

Dividends are a very powerful tool for investors, and can be the difference between a portfolio that performs in-line with the market over the long-term, and a portfolio that far exceeds the market's overall returns. There are several ways to handle … Continue reading at marketintelligencecenter.com

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Stock Market Investing

Miners Bury Dividends Amid Commodity Price Fall

But Anglo-American NGLOY-11.64 % PLC's announcement Tuesday that it would slash its dividend as part of a downsizing reaffirmed a new investment reality during what is proving to be a deep and lasting downturn for commodities' producers. With Chinese … Continue reading at wsj.com

Ex-Dividend Reminder: State Bank Financial, Amerisafe and Broadridge Financial Solutions

Looking at the universe of stocks we cover at Dividend Channel, on 12/10/15, State Bank Financial Corp (Symbol: STBZ), Amerisafe Inc (Symbol: AMSF), and Broadridge Financial Solutions (Symbol: BR) will all trade ex-dividend for their respective upcoming … Continue reading at nasdaq.com

8 Dividend Stocks That Funds Like Enough To Buy

Numbers can be adjusted to reveal or to conceal, but one financial number always is what it is. The number? Total shares that mutual funds and hedge funds own. If that number is rising, it shows confidence. Within IBD’s Dividend Leaders screen, eight … Continue reading at news.investors.com

3 Dividend Stocks Paying 6% or More

When it comes to dividend stocks, most "conservative" investors go for blue chip stocks paying under 4% or so. I think this is a terrible idea in general, because most dividend blue chip stocks are, at this point, wildly overvalued. You risk big … Continue reading at investorplace.com

* Looking to save some money when you buy your stock? Find out how easy it is to do so by buying direct from the company and save.

It has become much easier to invest directly with many top dividend-paying stocks and potentially save yourself a pretty penny in the process.

More than 1000 dividend-paying companies offer direct purchase plans of stock, which is usually an offshoot of the company’s Dividend Reinvestment Plan or DRIP.

As Charles Carlson says in The Little Book of Big Dividends, “Direct purchase plans allow any investor – young or old, rich or not-so-rich – to buy quality stocks in amounts that make sense for their situation.”

The three main advantages of buying direct are that:
1. Investment minimums are quite low – usually less than 0 and can often be below 0. This makes it affordable for most investors, especially when starting out.
2. Both full and partial shares can be purchased with dividends paid out on both the fractional and full shares.
3. Fees are very modest – in most cases you’ll pay less than per transaction and many plans have zero trading fees.

So, how do you purchase via a direct-purchase plan?

Follow these five simple steps:
1. Contact the company.
2. Read the plan brochure.
3. Make your initial investment.
4. Keep accurate records of your investment.
5. Rinse and repeat.

I would be remiss not to mention that the three biggest disadvantages of direct-deposit plans are:
1. You can’t control the exact buy price.
2. You are required to keep track of your holdings.
3. Some plans do involve fees.

Despite these undesirable qualities, the benefits of investing directly with the company are well worth it down the road.

Carlson stresses that: “Every dollar you pay to buy stock is one less dollar in cash flow generated by your investment.”

Buying direct makes sense for many aspiring investors wanting to put the maximum amount of capital to work for them in generating wealth.

Disclaimer: Any information shared on Stock Investing Simplified does not constitute financial advice. Stock Investing Simplified is not a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities readers or customers should buy or sell for themselves. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser.

Stock Market Investing

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Category: Dividends

One Response to “From Cash To Dividend Stocks: Building A Retirement Portfolio Step By Step”

  1. Byakuya Kuchiki

    If I reinvest my dividends, would that make it more difficult to track my dividends and how much I owe to the IRS?

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