Tesler App Scam: True or False?
This app is worth checking out – Few quick Reason…
- The Tesler App monitors and analyses the world’s financial markets
- Trade on Auto Pilot!
- The Tesler App is now a international sensation for beginner and professional Traders!
- Relax and let technology do the heavy lifting
Visit the official Tesler App Website
A few subscribers asked, what is a dividend, how to make money off of dividends, what are dividends, are dividends good? I received a handful of these so let’s just talk about dividends right now. Dividends are awesome. Dividends can be your friend especially if you’re investing long-term.
Dividends are your best friends. A dividend stock is a stock that pays you a dividend. Now, usually dividends are paid out four times a year.
However, there are some stocks and certain ETFs that pay out dividends once a month. One reason why dividends are so great is because it provides cash flow. Let’s use this example.
Let’s say we bought a stock January the first 2016and that stock price is $100 a share and the company is paying a 4% dividend. So over the course of a year, if I just hold that one share and let’s say the stock price a year later is $100 a share again, okay? I would have made 4% off of that stock because the dividend is paying me 4%.
Every quarter, they’re going to break it up. Every four months, you will receive a small payment in your stock account and it won’t be a lot of money. Let’s say you have $100,000. Well, now you’re gonna get$4000 in just dividends. Remember with my example, what if you bought a stock at $100 a share and let’s say the next year that stock is trading at $200 a share, okay?…
Quick note, this is a Tesler App Scam Review, Click any link to visit official Tesler website… Now, in this case, you have made money off of the stock price going up and you’re making a decent amount on the dividend because let’s say the company is still paying a 4% dividend.Now, you’re making a 4% dividend off of the new stock price, this new stock price is $200 a share. The dividend’s at 4%.
Now, you’re making more because the actual stock price is even higher and you’re still making more because when you bought that share, you only bought it for $100and now it’s trading for $200.So dividends are great. Now, what are the downsides with dividends? Some companies pay dividends. Some companies do not pay dividends. Companies such at AT&T and Verizon, they’re notorious for paying a dividend anywhere from four to 5%.
That’s a really nice dividend. Now, how often does their stock price go up? Well, that stock price fluctuates. It fluctuates a little bit, it goes up and down. End of the year, you’re probably not going to make that much off of the stock price but you’re getting a 5%or a 4% dividend which to some people is pretty secure because they don’t care about the stock price. They just want the dividend.
Companies that don’t pay dividends, usually newer companies that just start off like majority of tech companies do not pay dividends. Apple pays a decent dividend. Google had been around for quite a while and they still don’t pay a dividend.
Amazon, they don’t pay a dividend. A company like GoPro definitely does not pay a dividend…
Tesla, Twitter, I mean the list goes on and on of companies that do not pay dividends and some of these companies, they don’t really have to pay dividends because their stock price is moving good enough hand they don’t need to pay dividends. People are more willing to just buy the shares because the shares are increasing 50% per year versus the company that pay a dividend. Chances are if a company’s paying a dividend, their stock price is not goanna move 50% per year.
Their stock price may move anywhere from 10%through 20% a year which is decent but it’s not enormous gains like 50% a year or 100% a year which we have seen in a lot of tech stocks and a lot of pharmaceutical stocks and also a lot of biotech stocks. I’m actually trading in a company now that’s increased over500% in the past year and this is not a blue chip company and this is not a company that pays dividends. Dividend investing is just a different style of investing.
It’s a little bit safer, more long-term, Five years, 10 years, and 20 years. One thing I love about long-term investing with dividends is this example here. Let’s say you buy 100 shares of a company. Three months later, you buy another 100 shares.
Three months later, you buy another 100 shares. Three months later, you buy another 100 shares.10 years goes by and you repeat this cycle. Every three months, you purchase 100 shares. You purchased 100 shares.
After just a couple years, you’re goanna be receiving large payments on dividends if the stock you’re invested in is paying a dividend and if it’s paying a decent dividend like 3%, 4%. After a while, you will receive tons and tons of dividends and what most investors do when they receive dividends, they take those dividends and they reinvest it back into the stock. Eventually, you’ll get to a point where you’re buying 100 shares and your account is throwing you all these extra shares that you were not receiving before because of the dividend. You’re reinvesting the money back into the stock and now you have more shares.
More shares that you reinvest into the stock, remember, those shares are goanna pay dividends too. After a while, it’s like the snowball effect. Ooh, guys, very very important. One thing that’s great about dividends. Okay, let’s say you’re following a stock and this is like a blue chip company and this company has been around for a long time and let’s use this example of $50 a share. Let’s say their stock price is $50 a share and they’re paying a 4% dividend.
Let’s say that for some reason the markets are down. Overall, the US stock markets down and everything’s down 20%.If you’re very confident in that company XYZ with the $50 stock price, let’s say that now their stock price is down to $30but they’re still paying a 4% dividend. If you’re very confident in that company, it might be a good idea to buy more shares if you think the stock price will increase.
The idea behind this type of investing is you can now purchase shares at $30 a share and they’re paying you a 4% dividend and let’s say three months, four months down the road, the stock price rebounds, it’s back at $50 a share. Now, all these new shares that you bought when the markets were low, these new shares are worth $50and you’re getting 4% on $50when you only purchased them for $30.Alright, so let’s take this and expand it. Let’s say over the course of two years, now you have accumulated1100 shares in this company.
Every four months, you would buy 100 shares and you would reinvest the dividends and now let’s say you have 1100 shares. You put the TV on and you see the CEO of the same company that you’re invested in and he’s on TV saying, okay, guys, we’re goanna take our stock price of $100 a share and we’re gonna split it three ways.
Now, you go from having 1100 shares at $100 a share,300 shares at $33.33 per share and now you still get the 4% on those and now, your payment really hasn’t changed because values of your stocks are the same but let’s say another year goes by and you’re still investing here and there. You buy 100 shares every four months and then you’re still reinvesting the dividends.
Let’s say now the stock price has increased from $33 to $50and now, you’re making4% off of $50 a share…
…Just over time, dividends just add up, add up. In future videos, I will break down dividends even more and go into depth but I think that’s enough for this video. Thanks a lot for watching, guys. If you’ve just found my channel, if you’re new to my channel, subscribe. I make daily vlogs every day about the sharing economy, about making money, about traveling the world, about awesome food. So make sure you hit that link below and if you enjoyed this Article, Thanks a lot for reading. Peace.