What about dividend stocks?
The term plays a particularly important role here dividend an important role. If you buy dividend shares as an investor, you have a certain right of co-determination in the company. There is also a general meeting that investors can attend. However, much more important are the dividends that are paid out.
When are stock dividends paid? This usually takes place annually after the Annual General Meeting. Because these are dividend stocks, the companies have stipulated that they will pay out part of the profits to their investors. It is not without reason that stocks with a high dividend are very popular.
The dividend of a share is not based on the current market situation, but on the company’s results from the last period. It is decided how much dividend is distributed for each share. Accordingly, the more shares you own, the more you get. It is not without reason that dividend stocks are very popular. As an investor, the dividend is then paid out additionally, and depending on the company, this can sometimes involve larger sums.
What Are the Best Dividend Stocks?
You can of course use a search engine and simply search for the top dividend stocks worldwide, but that will only make sense in the rarest of cases. Because there are always changes in the stocks, so it may well be that the best dividend stocks worldwide will not have as high a dividend next year as they did last year.
It therefore helps to take a look at the history of dividends. A company that can consistently pay good dividends in shares will continue to do so. However, if a simple company is already declining or has been paying out little dividends recently, you might want to choose another company.
You can often buy dividend stocks from companies you don’t necessarily know. It doesn’t matter if you know the company personally. For example, in the US, JP Morgan Chase is very popular. This is one of the largest banks in the USA, which spits out very high dividends and has developed remarkably.
In itself they are top dividend stocks worldwide but very broadly distributed across the individual sectors. So you can’t say that an area like the banking sector pays out a lot of dividends, it really depends on the company. All the more important to look closely. Not every company has shares with dividend payments, which should not be forgotten, especially as a beginner.
Do you have to consider anything when buying?
There are not many differences to normal trading, except of course that you should be interested in investing in a company for the long term. So you have to register with a service so that you can also purchase the shares. There is a wide selection on the Internet, so you will quickly find the right provider.
Incidentally, when buying dividend shares, you can also limit yourself to certain areas such as dividend shares Germany or dividend shares Dax. If you look at companies worldwide, the choice is very large and you can do a lot wrong, so that the dividends don’t go as well as you thought.
When buying, you should also consider that you have done enough analysis beforehand, otherwise dividend stocks can go down, even if you had expected the opposite. If you don’t have any knowledge in this direction yet, you can get good advice from an experienced broker who will then give you tips.
Of course, you shouldn’t expect dividends immediately after the purchase either. If you want to keep track, you can also make notes in Excel so that you always have an overview of all dividends. This makes sense if you are with several brokers.
Photo credit: peshkov / stock.adobe.com
PS: Quality management is important to us!
Please let us know how you like our post. To do this, click on the asterisks shown below (5 asterisks = very good):
PPS: Did you particularly like the post?
Support our advice portal: