Invest 101: Do dividend stocks always give returns?

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Investing Berita

Investment,Personal Finance,Money Talks

Every investor should have a dividend stock in their portfolio, says our guest on the Money Talks podcast.

Is it always safe to invest in dividend stocks? In this episode of Money Talks, UOB’s Head of Wealth Management Advisory and Strategy, Abel Lim, shares his insights on how to identify the right ones, and the risks and rewards of adding them to your portfolio.So when I invest in a dividend stock, I would expect some returns. So when is payday for dividend investors, and how are they paid out?Okay it varies, again from company to company, industry to industry as well.

The eighth wonder of the world is the power of compounding. So when you reinvest your money, you reinvest the share into the company, you create two streams of income - the natural income which is the dividend payout. But because of the fact that you are reinvesting it, you're earning interest upon that interest, or dividend upon dividend.So it's really a good strategy to have it stacked on to each other so that you're just maximising your returns ...

 

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Invest 101: Do dividend stocks always give returns?pIs it always safe to invest in dividend stocks? In this episode of Money Talks, UOB’s Head of Wealth Management Advisory and Strategy, Abel Lim, shares his insights on how to identify the right ones, and the risks and rewards of adding them to your portfolio.
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