Stocks

When investing in stocks, the sole purpose of investors is to earn a divided on their investments. Dividend stock investing does not often provide the short-term capital appreciation of hot penny stocks Nor does it match the excitement of day trading, which during rapidly rising markets can make these investments seem like stodgy, slow money stocks.

These REITs are just one of the many types of companies that have a consistent enough cash flow to provide a monthly payout to shareholders. As I understand it, with a dividend growth portfolio you would never realize the gains and hence pay no taxes on the gains.

Investors may still wish to browse the list of dividend-producing stocks that payout dividends on a monthly basis and assemble their own list of dividend stocks. The investment return on common stock is from a hoped-for increase in the company's share price over time.

Monthly dividend payments can help them supplement their retirement income without having to dip into the principal of their investments. It will normally exclude special one time payouts that do not follow the normal dividend calendar of the company. One upside to dividend stocks is that these companies usually pay out dividends regularly.

Often a stock's dividend growth rate closely tracks the company's earnings growth rate. Following a company's track record for dividend payments will provide some insight of what to expect in future years. Last but not least we have growth stocks. Companies that pay dividends tend to also have good What Is Dividend Stock? Dividend Power internal management practices.

Its long history of annual dividend hikes shows that it is a shareholder-friendly company, committed to providing investors with rising dividends every year, regardless of the economic climate. Such stocks are usually smaller companies as they have a greater potential to see a large increase in their share prices.