Friday, March 12, 2010

Making Money on the Stock Market Using Dividends

An easy long term way to make money on the stock market is to make use of the dividends paid by many companies. When you receive the dividends, you can reinvest them by buying more of the same stock. This has a compounding effect, and along with any capital gain of the stock can build a good valued investment.

The first step is to sign up with a broker if you don't already have one. Then it is a matter of selecting a good dividend paying stock that also provides a dividend reinvestment scheme. With such a scheme, any dividends that you receive will be reinvested in stock on your behalf. Choose a stock whose company is well run and managed, with low debt, and operates in a reliable market. Stocks paying dividends of 5% or higher exist. Consult your broker about selecting a suitable stock. Many online brokers provide additional information about stocks such a dividend yields, frequency of payments, debt levels and other interesting information. There are also a number of advisers who, for a fee, provide recommendations on good dividend paying stocks. Another advantage of dividends is that a number of countries provide tax advantages on dividend payments. For more information consult your local tax authority.

Sunday, March 7, 2010

Money making tips

Hi,

The purpose of this site is to provide a forum for money making ideas, tips and suggestions. This blog is not for investment advice. You should see a qualified investment adviser if you want to make any investments. If you see any great money making or investment tips here don't rush in and invest your life savings, or anything else for that matter, see a professional investment adviser first. Any investment decisions that you make from information on this site are entirely at your own risk.

There are lots of ways to make money, some of the main categories being earning a wage, running a business, and investing. Of course the really important aspect of making money is not to loose money. This applies especially to the investment category where losses on stock markets, for example, are well known. This is not to say that the stock market should be avoided, but that you should have a good trading plan in place if you want to be a successful trader. I will soon post descriptions of some of the various types of stock market investing such as share investment and trading, options trading, CFDs, commodities, metals, etc.