Stocks, ETF's , Dividends
Although we are discovering alternative investments, stocks should also paly a part in your portfolio.
There are 100s of ways to invest in stock and for a lot of people feel scared to start or feel they are a risky place to put your money. Though, it’s never been easier, learn about the following types of stock you can own:
Individual Stocks: Investing in individual stocks allows you to own a direct share in a specific company. This approach requires research and analysis to understand the company's fundamentals, growth potential, and industry prospects. If you have an interest in the stock market and companies then it may well be worth doing your research and investing in individual stocks. The philosophy and way to invest can’t be beaten by The Motley fool they have many free podcasts and articles
Exchange-Traded Funds (ETFs): ETFs are investment funds that trade on stock exchanges like individual stocks. They represent a basket of assets, such as stocks, bonds, or commodities, and offer diversification across various holdings. ETFs provide a simple and cost-effective way to gain exposure to a specific market index or sector without the need to purchase individual stocks. For example, you could purchase an ETF that tracks the overall S&P market or one that covers tech stocks or finance stocks if you prefer to narrow down your type of stock exposure. Vanguard started the low-cost ETF and now there are many companies offering ETF’s with low service fees from 0.03% to 0.25%.
Dividend Stocks and Dividend ETFs: Dividend-paying stocks are shares of companies that regularly distribute a portion of their earnings to shareholders in the form of dividends, typically 1.5%-4% but can be higher. This can provide a source of passive income, and dividend stocks are often favoured by income-oriented investors. Dividend ETFs are funds that hold a diversified portfolio of dividend-paying stocks, providing investors with exposure to multiple companies with consistent dividend distributions.
Real Estate Investment Trusts (REITs): REITs are companies that own, operate, or finance income-generating real estate assets. Investing in REITs allows individuals to participate in real estate markets without directly owning properties. REITs typically operate income-producing real estate assets, such as apartment buildings, office buildings, shopping centres, and hotels and distribute a significant portion of their taxable income to shareholders in the form of dividends. REITs provide a regular source of income like a dividend and typically at a higher rate 3.5%-5%, as they are required to pay out most of their taxable income as dividends to shareholders.
Get Started
You can start an account on your phone from your favourite broker in the States or Etoro , Swissquote are alternatives for out of USA based investors.
Snapshot
Why should you invest in this? Excellent proven base to build wealth
Percentage of portfolio to invest? 30%-60%
Our Risk rating? With diversification and long-term mindset 4/5
Our overall rating? 4.5/5
How do I start? Research Motley Fool, start an account Etoro or Swissquote
