Question: I am 19 years old still in full time education and would like to buy a share in a company?
all i would like to do is buy a VERY small share in any sort of business and basically get very VERY small dividends each month. i am not too serious about this investing stuff but i though it might be helpful as im growing up in the long term and after like 7 years be getting 100% profit from it as i am still young. i dont care too much for selling and buying etc i just want something small that i can forget about.
ive read online about where to start and it all seems too complicated. can someone give me basic advice about buying shares in a business and tell me things e.g. dividends are monthly, dividends may decrease etc etc and most importantly where to buy the share from?
i know there are a lot of smart people reading this that would kindly help me. thanks in advance :)
Answer:
Listen Triqyy,
I am also in college. I've invested most all of my student loans and I am making more on them then interest I owe ;). However I have been obsessed with investing and trading for almost 3 years now... All day every day I study and learn and make decessions for my portfolio. The deal for u is that u do not want to do any work. That is stilll ok but u need to trust someone's advice, and that can be dangerous. I wouldn't be suprised if u already got messages from people trying so sucker u out of ur money. Investing is risky. You could go the simple route and put it in a mutual fund which is a basket of stocks that someone else already choose... But finding the right one is just as difificult. Last week I decided I am going to sttart a website where I display the trades I am making in the stock market ahead of time. Trades are bought and sold every few days... So that is a little work. But u would not have to do any research... Only check the site and place ur order. Opening an account for urself is very easy and ill show u how. I think I'm only going to charge people about $10 per .month for membership that way the free are low and spread among many people. And then people would get a chance to see if I really do choose winning investments. Like I said they would last anywhere from one day to 2 months depending. So that's about the only way you could get the kind of returns u are looking for. Others might advise u toward dividends or to a local brooker but they are expensive. I'm not sure if I am legally allows to manage other people accounts myself... Physically until I'm done with school. By the way I'm a junior at Oregon state university. So if u are intersted.... Then just post something back on here or email me .... And I hesitate to do this but.... Bspicer1@cp.chemeketa.edu ...... Notice that's an education website from school. Hopefully no spam will result.
sorry about any spelling errors.... i'm on a phone and it autocorrects and says stupid things.
ps. I do agree with what Jose said down there. Index funds diversify for you. Dividend investments have never been a very profitable venture that I'm aware of, unless you have very large amounts of money. This service I'm going to provide invests in index funds and etfs, but it enters and exits the market in such a manner that it does much better then the market. I know this is tough to belive, so my advice to you, is not to believe it, because honestly someone will give you some bogus advice on some penny stock and you will loose everything you worked to save. So stick with what Jose said down there. Just buy the same amount of shares every month of "SPY" is the ticker. THat should do it for you. you end up buying more when it's low and less when it's high, and it averages out for you. You would essentially be wagering on the performance of America. Good luck,Sir! I know the markets have changed my life, and i wish you the same!
Listen there will a load people can give you on this question and I'll try to keep it as simple as possible. There is not much evidence that the stock market will boom phenomenally.So if you are looking to invest either you should invest in something that you know will do well. Is there any company in any field that you are interested in that will do well over 10 years? Usually the answer to that is blank so you should stick with diversification. Purchase small quantities of index fund for a fixed amount every month and you'll be fine.
There are very few that pay dividends monthly--most they are closed end funds that invest in bonds. Most companies that do pay dividends pay every 3 months.
The best way for someone who wishes to buy only a few shares is through a direct stock purchase plan. Usually, those require a minimum start up cost of $500 to get started, some less about $200 or $250. Once you are started you can re-invest the dividends when they are paid automatically. You can also add more money to your account when you wish.
Here is a link to one of the sites that offers direct stock purchase including the minimum to get started.
https://isd.bnymellon.com/isd/faces/jsp/…
There are a few good options there for you to consider in my opinion.
Pepsico with a $250 minimum. They have a long history of raising their dividend annually and pay a dividend that is currently about 3.1%.
Emerson Electric is another with a $250 minimum. They also have a long history of raising their dividend annually and pay a dividend that is currently about 3.1%
Diageo PLC has a $200 minimum. They pay only once a year though I think, but their dividend is about 3.4%. They are a British company that sells liquor and beer. Johnnie Walker, Smirnoff, Royal Crown, Guinness, and many other brands.
CVS doesn't pay much of a dividend currently. Only 1.5% but their minimum is only $100. They have been raising their dividend.
Statoil is an oil company in Norway. I think it pays only about once a year too. Its current dividend is about 3.5%. I think that the dividend is subject to foreign tax with holding. Not certain. It has a $200 minimum.
Those are a few of the really good ones in my opinion. Another you might consider is General Electric with a $250 minimum. Its dividend is currently at 3.6% and has been aggressively raise recently. The company did have some problems though during 2008-2009.
Let me tell you that you are much wiser than you age of 19 years
Your first step is to give your self the tool to invest your money
- open a demat account
- open a online trading account
Your next step will be to search for high dividend yielding stocks. Hint: big and established companies distributes dividends
Dividends are paid to share holders quarterly or half yearly or generally annually. The distribution frequency is depended on managements decision.
The dividend income can be expected to increase in future in same proportion as increase in EPS. i will advice you to please track EPS of companies (quarterly) whose shares you are holding
First of all dividends are not payable each month. They are paid quarterly. Also understand that a VERY small investment will yield a VERY small dividend. For example one share of IBM will cost you $192.42 and will pay a .75 dividend per quarter. So for the year you will receive $3.00. A cheaper stock such as Exxon Mobil will cost you $83.78 per share and pay you .47 per quarter. Will either of these stocks give you a 100% return in seven years? Probably not.
If you go with stocks that pay unusually high dividends you increase the risk that the dividend can't be maintained over the long haul.
Keep in mind you will have to open an online brokerage account. Buying one or two shares will cost between $7 and $10. So it will be some time before your dividends exceed the cost of buying a couple of shares.
Go to the search engine of your choice to do some homework. Type in "dividend stocks" When I did that I got over 40,000,000 results.
Good luck and best wishes.