Dividend stocks that pay you weekly would be a great investment strategy for those that need dividend income to get by, or those that want to build their portfolio rapidly.
Although there are no dividend companies paying weekly checks. There is a way to receive weekly dividend checks from many different companies using an old trading strategy known as dividend capturing. Dividend capturing is when you buy a stock before the ex-date and sell after date of record in order to collect the dividend payment. There is an old mis-conception that you need to hold on to the stock all year to collect dividends. Not true. You only need to own the stock on the date of record. To collect many checks you need to buy before the ex-date and sell after the date of record... that is usually 2-3 days. Sell for small profit and move on to the next dividend paying stock.
There are over 3500 companies paying out dividends this year and there are 252 trading days in which to do this. Finding the right stock to buy is just as easy. Stick to a proven winner... a stock that has done the same move over and over, year after year. here are plenty of them out there. The Dividend Aristocrats are a great place to start. The Aristocrats have been increasing their dividend payout for over 25 years. The Dividend Kings have been increasing their payouts for over 50 years. There are 2 lists of great stocks to start with. Also think about using our dividend calculators to help sort through and find the best stock
Dividend stocks for the upcoming month of August. Contrary to popular belief there are companies that pay out dividends almost every trading day, thus making dividend trading for monthly cash flow possible. With close to 3500 companies this year, it is easy to find someone on the list that you recognize. (this count is not including the dividend paying ETF's) Every company pays out 2 - 4 times a year and a few pay out every month. On average if every company pays quarterly dividends that would mean there amount of dividend trading opportunities is well over 15,000 choices every year.
With 252 trading days in the year, you can see that there is always some thing happening in this trading sector.
This list of profitable companies getting ready to share their good fortune is to the left. Although this is just a small list of 2 days in August it represents the realm of possibilities of what is coming for those that want to invest for monthly cash flow using dividend paying stocks. WMT has been on my radar every time it is ready to payout profits, every 90 days I buy WMT then turn around and resell it for a small profit. The $.43 per share dividend value may not seem like alot of money.... But, trade that 4 times a year with the average hold time of 10 days. That only come to 40 days to collect 2.2%. With a few other quality stocks with this kind of returns, I can hit 25% ROI with little effort. MET is looking good and also SCCO has my eye too. Tradign for dividends is as easy or complex as you want it to be... buy the stock... collect the dividend... sell for profit
Dividend stocks this year that are profitable and sharing those profits with investors come to a total of 3255 companies. That is a very big ocean to go fishing in. How do you know which companies to buy and what to pass on? Well... Let's look a little closer at the yield and what companies are offering. If you want to beat what your banker is willing to offer you... you just dropped your line into a lake filled with 2775 companies beating the 1% CD rates offered by leading bankers. Let's say you want to get double the bank CD rate and look at companies offing 2% yields... Well that smaller lake is filled with 1874 companies. Not any closer to making a good choice but still closer to the half way point. The Wall Street average last year was around 6%, how many companies are beating that right now? 391 companies are beating the Wall Street average from last year. Do you have enough money to buy some of everyone of those companies? Me either, I want to fish in a much small pond for my investments if I want to reach my financial goals. 102 companies are paying more than 10% yield to their investors
102 is a much easier number to look at than the 3255 we started with... but I want to set some bait for a small number to choose from. If I want to add some options to the mix and you only reduced your puddle to 74 profitable companies willing to share some of their good fortune and have options available on them. (adding options to your trading is in another article.... check archives) Make this puddle a bit smaller if we make sure the company has great liquidity. With over 1 million shares trading everyday that number comes down to 27. Let's add a market cap of over $2 Billion and now you are fishing in a tidal pool of only 13 companies. Thirteen profitable companies that are paying over 10% yield, over 1 million shares average volume and +$2 billion or more market cap... I'm pretty confident in saying that this is a very nice list to be looking
Trading dividend stocks to gain some weekly cash flow may not have been at the top of your list when sitting down with your financial adviser. Most advisers look at investing as an annual return and cannot or should I say are not educated in the possibilities of anything other than yearly returns let alone weekly or monthly returns.
Can the average investor really make some good returns with weekly trading of some dividend stocks? I say yes. How you may be thinking right now. Ex-dates are the last day a stock is traded before the dividend is paid out. Many stocks drop in price the day after, usually equal to the amount of the dividend. Many stocks do not drop in price and keep on trading as if it the dividend payout didn't happen. Meaning they don't drop in price which would allow you to buy, collect and resell for profit. Or on the the other hand... some of these dividend players drop in price the day after Ex-date and then proceed to move up past pre-Ex-date pricing. Again this situation puts you into a profitable situation yet again. Now i'm pretty sure you are wanting to know how to find these trading gems... right? Over the 20 plus years of investing I have come up with my own Dividend Stock Calculators that help me pick my trades.
You may want to stick with the tried and true Dividend Aristocrats or another quality stock list. The dividend aristocrats are stock that have been consistently increasing their dividend pay outs for more than 25 years... but hey that's another subject. For now dividend investing for weekly cash flow can be what you a
With options expiring next week, how will options effect you profiting when it comes to dividend capturing? Truth be told... some stocks are affected by the options expiring close to the dividend payout and some aren't. But if you want to just collect the Dividend check and be done with the stocks then I say "stay away from stocks that have shown in the past that they are swayed by the upcoming dividend". There are over 3500 companies this year paying out dividend and there is no reason to invest in those that might not perform as desired.
I like dividend capturing and I like to collect dividend checks... lots of them. I like to see the dividends reinvested for compounded growth. I'd like to share that strategy with many people. I feel that if people just took a little time to see the strong reasoning and logic in buying companies that share their profits with investors. Buy the stock, collect the dividend and move on to the next one in line. Your ROI.... return on investment... will go through the roof. Dividend capturing can get you that goal a lot quicker than just listening to the talking heads or trusting the so called investment advisors. Even if option expiration has had an effect on a dividend stock in the past... look at a different one
Dividend trading with a no loose strategy in less than 10 minutes per week. Sounds simple enough, sounds very enticing too... sounds almost to good to be true. Trading dividend stocks to collect some cash flow is a great plan, how-ever many investors do not want to risk any money and want to look at "no loose trading plans". That may be more possible than once thought before. Dividend capturing with the right stocks can do just that for you. Dividend stocks have a tendency to channel between high points and low points, fluctuating up 50% in price through out the year. Buying somewhere in the middle of the range is a good place to start. Looking at the cycle trend, the price high/low for the current year and comparing it with past years will give possible indications of future movements. This might sounds a little out there but look at the facts. You want cash flow, do you really care about news events, new product lines, upcoming law suits, media hype or what the talking heads opinions are?.... No! Consistency of dividend pay outs, price consistency, maybe market cap and cash flow might make you fell better. I am only interested in dividend stock companies that have a track record of doing exactly what I am looking for... paying out cash to their investors. Trading dividend stocks, collecting dividend checks and not loosing any money. That's a good plan.
What do investment banks actually do? And do they really deserve the outrageous salaries some of these fat cats think they are entitled too? First off investment banking is supposed to be a way for the average joe to in on the Money action. What exactly is that anyway? Money is constantly being traded from one person with a good idea to another. Sometimes it maybe diamonds, precious stones, fine art, commodities, stocks, real estate and any other investment that comes around. The investment banker arranges the all the interested parties and draws up all the paperwork to keep everything legal and is supposed to make sure that all parties are properly represented. More or less it could be explained as someone that brokers or barter the deal, so everyone is happy. Investment banking is one of those industries that has changed from its origin.
Do these banker really deserve the fat paychecks regardless of profit and loss of their brokered deals? I have always been one for a performance based compensation schooling. If the deal goes well everyone should profit. On the other hand someone should be liable when deals go bad... That is just not the way things have been going lately.
Should the salaries have caps? Here I'm going to stick to my performance based salary statement but the argument of salary caps does have its merits.
Investing with the Dividend Kings and you can not go wrong! Bold statement if I say so myself. What give dividend paying stock the right to be called a "Dividend King"?
The answer to that is simple and direct. 50 years of increasing dividend payouts is what gives them that right. Rightfully so also, Companies have 2 choices when it comes to " what to do with all the profits" Choice #1 is to invest the money back into the company for future growth. Choice #2 is pass along the profits to the investors.
Why are you investing in the first place? Cash flow or future capital growth.
I have put together a great video on these Dividend Kings that you might want to check out. Maybe you might just want to start investing in these "Dividend Kings" yourself.
Just out of high school I decided to be self employed, after running a successful manufacturing business I had a problem of making more money than I knew what to do with. I started investing, after 23 years of investing I now want to share my strategy with a select few that want an extra edge in their own investing.