Are you a fan of dividend stocks and royalty?
What if we told you that you can mix both and make passive income from your two loves? In this article, we are going to introduce dividend aristocrat stocks.
These stocks consistently increase their dividend payouts and are great investment choices for passive income.
The companies that are included in the list of dividend aristocrats stocks have increased their dividend payments for at least 25 years straight.
What is a Dividend?
A dividend is a cash payment a company makes to its shareholders.
It is a percentage of the company’s profit that they pay at a set time – it can be quarterly or monthly.
Why do we like dividends, because we like “schmoney”.
Wouldn’t you love getting income just for holding the stock?
You can’t get more passive than that. But wait, there’s more. Dividends are also taxed at a lower rate than income.
On top of that, dividends can also be reinvested to add more money to your portfolio.
Why do companies offer dividends?
Companies that give dividends tend to be more stable companies.
These companies are mature so they are not considered as growth stocks.
You are not going to get most of your money by buying them low and selling high.
However, you will get money for just holding onto the stock.
They can be considered less risky and not as sexy as growth stocks but they provide stable passive income.
These companies pay monthly or quarterly dividends on their stocks.
If you are looking to create a stable income outside of your job, then you should be looking into including these stocks in your portfolio.
If you are interested in buying a dividend aristocrat stock you can purchase them individually or through Proshares.
If you want to buy them through Proshares, you would buy their ETFs.
The two ETFs you should look at are NOBL and REGL.
If you want to buy them individually, you can look at the list of the dividend aristocrat stocks and choose a company on the list and purchase it through you broker.
If you are looking to diversify and spread out your risk you may want to do research the ETFs.
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Nicole is a partner at Wealth Twins LLC. She holds a B.A from Columbia University and an M.B.A in Financial Instruments from New York University. She has worked in Investment Banking and Financial Services for 15 years and retired early in her 30s because of Financial Independence. She is an entrepreneur, investor, and passionate about teaching others how to reach Financial Independence.