investing

Steady returns with dividends

Bankrate Audio » Steady Returns With Dividends

Listen to audio

Editor's note: This is a transcript of the audio file.

When the markets are volatile investors can still receive regular income from their stock investments via dividends. I'm Kristin Arnold with your Bankrate.com Personal Finance Minute.

So, what exactly are dividends and what are the benefits of dividend paying stocks for investors? Greg McBride, Senior Financial Analyst, with Bankrate.com explains.

"Dividends are regular cash payments made to the shareholder of a company. Dividends can really add up, especially when reinvested. Companies that pay dividends also tend to produce steadier performance in volatile markets."

Sounds like dividends are a good option for investors – what are some things investor should know before going in?

"Dividends aren't fixed; they come from profits so a company downturn could jeopardize the dividend. So you want to make sure that you're diversifying your money among different companies that have sustainable profits."

Investors can add dividend-payers to their portfolios by purchasing individual stocks, mutual funds, or exchange-traded funds.

For more information on dividends, just visit Bankrate.com. I'm Kristin Arnold.

advertisement

          Connect with us
Product Rate Change Last week
1 Year CD 0.89%  0.01 0.88%
2 Year CD 1.01%  0.02 1.03%
5 Year CD 1.59%  0.01 1.60%
 
View Rates in your area Search
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

How can I pay myself first?

Dear Dr. Don, You often advise readers to "pay yourself first." It sounds like a fine idea. But I'm wondering how that actually should work. I'd like to know how much or what percentage of my income should be set aside... Read more

advertisement

Blog

Sheyna Steiner

Investing: Sometimes less is more

A sixth grade class played along in an investing throw down among college-level clubs and easily beat all their returns.  ... Read more

Partner Center
advertisement

Connect with us