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Why am I exactly "Dividend Investing" as most call it?As of right now, my cash flow isn't that strong. I am a dividend investor because, depending on which broker you use, I can REINVEST my dividends back into the company that provided them to me. Therefore, I can make more contributions in a company without having to find a way to make that money. I simply just click a check mark under Dividend Reinvestment online through my broker's website and the dividends are automatically reinvested for me.
What are my goals as a dividend investor one may ask? To be honest, it is to someday have enough cash flow from dividends alone that they at least equal my monthly expenditures, so that I will not have to work the rat race any more aka the 9 - 5. I know that it is a risk to rely on dividends, but that is what analysis is for and to always keep up with the companies or funds that you own.
Other reasons why I enjoy dividend investing are the tax benefits (hopefully to be extended after November of this year). You are taxed either 0 or 15% for Qualified dividends, depending on your tax status (0% for tax brackets up to up to and including the 15% ordinary tax bracket). Therefore, it's advantageous for dividend investing.
Also, depending on the market, you can receive more shares when you reinvest those dividends if the share price has dropped. Which hinders back on my last post saying that, virtually if its a good/sound company, you want that share price to drop so that the company paying the *consistently Increasing* dividend can then be reinvested into more shares.
I will post later when they strike my mind on why else I dividend invest. I will also analyze companies to see if they are worth investing into and post my responses. Again, This is not advice. Just merely what I do, Why I do and How I do things. Thank you.
-Lanny B
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