‘A more efficient strategy to pay attention to common returns’

If you want to create a cash flow from your stock portfolio, you must receive dividend shares. These assets once give dividends once in a quarter, there are several stops that give monthly dividends.

However, accept cash flow does not mean you can choose the best investment right now. A couple recently worth $ 2.7 million invested in dividends Not the best strategy for young investors.

“It is a more effective strategy to pay attention to the total returns,” he said.

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These recommendations make sense and what young people should think of the young dividend investors before adjusting their portfolios.

Young investors will not have to trust the cash flow soon. Positive cash flow in real estate will increase, growth has expanded, there are no equities for stock investors.

Some dividend investors give a high product and end with total returns. For example, Realty Income (NYSE:O) His productivity is a popular dividend scene of almost 6%. But in the last five years, the stock price was flat. Meanwhile, non-dividend technological companies have increased twice in the same period.

Dividend shares make more sense when you need money flow to pay residential costs and reduce your risk. Most companies that provide cash distributions to investors are mature companies with the best growth days behind.

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Another detail is taxed about dividends that give younger investors a less attractive strategy. Most dividends are given tax rates in long-term capital savings tax rates, so it is better than ordinary income tax rates. However, by investing in reliable companies that do not provide dividends, you can completely avoid taxes.

In addition, dividends come from a company saved. To provide investors, it limits how a company can re-invest in itself. Amazon (NASDAQ:Amzn) Regularly reconstructed the profit, and these investments have helped Amazon to start launching Amazon web services, start all the foods and starting income.