Financial abundance

Dividend is King.

Long live the King.
When I started with investing I just bought some stocks I knew. Which is a good way to start investing buy a stock you know and like. What every happens you will learn from it, although the first big lose is probably the most painful one. When I started investing I lost and gained money, but I noticed one thing dividends.

Dividends makes all the difference.

If you look at the long run, a stock gains and loses money it is constantly moving and has major trends over time. A typical stock goes up and down, but with dividends there is a difference. There are stocks that pay fluctuating dividends. But there are stocks that somehow are able to increase the dividends each year and have a track record of increasing. Also called dividend kings or aristocrats.

The snowball effect of reinvesting dividend.

Dividend is great, but it’s even greater if you start reinvesting dividend. If you look at the long time, stock gain alone will make you a profit but reinvesting dividend super charges you investment.

Dividend is a long game not a short one.

So what if you bought a stock and wait for the dividend and then sell them? You probably lose money. This has a reason, mostly the stock price is corrected for paying out dividend.  This actually is an interesting concept because if you want to reinvest you gained dividend, the day of receiving dividend the stock is mostly cheaper.

To conclude.

Determine your strategy when you invest in stocks, but be aware of dividend. I myself have a few different types of stocks in my portfolio including dividend paying stock, growth stock and penny stocks.
Time will tell what gives me the best return of investment.