Did you know that there's a major bargain sale going on right now? This sale could make you thousands of dollars, maybe even hundreds of thousands! And the average person will think you are crazy to buy any of this stuff right now. But you should. It would be to your advantage!
Have you seen the stock market? Apparently there is an election coming up (and many people have already voted) and it's made people more skeptical about the stock market. Silly people. This is great for me! Well, it would be if I had more liquidity right now.
Right now the stock market has plunged, and for dividend stocks this is like Black Friday or Cyber Monday. You can buy a stock for $36/share that was $43/share not that long ago. That doesn't sound like much of a sale until you look at the dividend. <grinning like a kid in a candy store> It's the difference between 4.4% interest per year and 5.3% interest per year, with the option of compounding! That doesn't make sense to most of you, does it?
Here's the example I gave my friend the other day.
Let's say you have $1,500. If you bought shares of AT&T (T) in July or August, you would've gotten about 35 shares. Each of those shares paid $0.48 on Nov 1st. That's $16.80. That's more than most people make in a year on $1,500 in their savings account.
Now, let's say you wanted to buy AT&T today (the market is closed, so will go with a round number from the last few days). You would pay a little over $36/share and get about 41 shares. Those share will pay $0.49/share in January. That's right! The dividend payout has increased! So, in January you would get $20.09.
Pretty neat, right? Bargain sale!
Now, don't get me wrong. You would still be getting a good deal if you had bought in July. The dividend payout did increase for January. But, in reality, I'm assuming you don't own any shares. So, now is a great time to start investing!
I really wish I had already completed my course so I could share it with you. But as a bonus, today, I'm going to compare for you what that $1,500 would look like in a year between stocks and your savings account.
Let's go with you buying shares today. So, you would have 41 shares that will pay $0.49 per quarter. That totals $80.36.
Let's say you have 1% interest on your savings account (this is actually higher than most people I know have). You'd make $15.
Now, let's say your annual income is $40,000. That puts you in the 25% tax bracket. So, you would keep $11.25 of that $15 and pay $3.75 in taxes.
If you had instead invested the $1,500 in AT&T. You would keep $68.31 and pay $12.05. That's because AT&T gives a qualified dividend and those are taxed at 15% if you're in the 25% tax bracket. What would you rather have: $11.25 or $68.31?
This still excludes compounding. That's a lesson for another day!
Don't bury your money in the ground. Let it work for you.
Have you seen the stock market? Apparently there is an election coming up (and many people have already voted) and it's made people more skeptical about the stock market. Silly people. This is great for me! Well, it would be if I had more liquidity right now.
Right now the stock market has plunged, and for dividend stocks this is like Black Friday or Cyber Monday. You can buy a stock for $36/share that was $43/share not that long ago. That doesn't sound like much of a sale until you look at the dividend. <grinning like a kid in a candy store> It's the difference between 4.4% interest per year and 5.3% interest per year, with the option of compounding! That doesn't make sense to most of you, does it?
Here's the example I gave my friend the other day.
Let's say you have $1,500. If you bought shares of AT&T (T) in July or August, you would've gotten about 35 shares. Each of those shares paid $0.48 on Nov 1st. That's $16.80. That's more than most people make in a year on $1,500 in their savings account.
Now, let's say you wanted to buy AT&T today (the market is closed, so will go with a round number from the last few days). You would pay a little over $36/share and get about 41 shares. Those share will pay $0.49/share in January. That's right! The dividend payout has increased! So, in January you would get $20.09.
Pretty neat, right? Bargain sale!
Now, don't get me wrong. You would still be getting a good deal if you had bought in July. The dividend payout did increase for January. But, in reality, I'm assuming you don't own any shares. So, now is a great time to start investing!
I really wish I had already completed my course so I could share it with you. But as a bonus, today, I'm going to compare for you what that $1,500 would look like in a year between stocks and your savings account.
Let's go with you buying shares today. So, you would have 41 shares that will pay $0.49 per quarter. That totals $80.36.
Let's say you have 1% interest on your savings account (this is actually higher than most people I know have). You'd make $15.
Now, let's say your annual income is $40,000. That puts you in the 25% tax bracket. So, you would keep $11.25 of that $15 and pay $3.75 in taxes.
If you had instead invested the $1,500 in AT&T. You would keep $68.31 and pay $12.05. That's because AT&T gives a qualified dividend and those are taxed at 15% if you're in the 25% tax bracket. What would you rather have: $11.25 or $68.31?
This still excludes compounding. That's a lesson for another day!
Don't bury your money in the ground. Let it work for you.
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