I started studying a type of stock investing called dividend investing. I had never considered this type of investing until I came across the FIRE movement. Some of the bloggers in the FIRE movement are using dividend investing as a way to build a passive income with the goal of retiring on their dividend income.
The basic concept with this type of investing is buy stocks that pay a good dividend and hold them long term.
As you are paid dividends reinvest that money back in by using that money to buy more shares of stock. This is called DRIP, a dividend re-investment plan.
The blogs I have been reading have a lot of good advice. For starters they say to buy stocks that have raised their dividends for the past 25 years, these are called dividend aristocrats. There are over 50 of these companies.
There are lots of articles on different apps to do the investing with, I choose one called M 1 Finance. This app is fairly simple to use and has some really good features. One is you can setup an automatic deposit into your investments on a regular schedule. Second is you see your investments in a pie format which is kinda neat.
In this screen shot you can see my dashboard in the M 1 Finance app. I started out buying 250 dollars worth of AT&T stock. So now I own 8 full shares of stock and what is called a fractional share. The price of each share was 30.22, for now I set it up to add 35 dollars a week to the account and it all to be invested into AT&T stock. So each week I will be buying 1 full share and a fractional share.
I picked this company because it has a long history here in our country and I have been a customer of the company for 15 years. This company pays a quarterly dividend and the next dividend payment should be paid out in July. In this type of investing I will re-invest the dividends by using the money to buy more shares of stock.
I am not sure why but I had never took an interest into the stock market before now. I have seen people like Warren Buffet in the news but just never gave investing in the stock market a second thought. After finding these bloggers who are really into this type of dividend investing and seem to have a lot of fun writing about it I found an interest I never had before. Maybe this will give me more to write about and make me some money at the same time.
I am not sure but I think M 1 Finance is only usable by people here in America. I am new to this so I am not sure if other country’s have app’s that they can use for investing in the stock market.
That is all for today, have a super wonderful day.