5 Dividend Stock Ideas For 2019

[SensibleInvesting]

Whilst dividend stocks may seem boring in comparison to flashy high-growth tech stocks, weed stocks, non-meat stocks, and etc., it's worth considering having a portfolio percentage allocated to them.

Not only do they benefit from the power of compounding, reinvestment, and reinvestment compounding, they're usually very reliable - like your Toyota Corolla. The key with dividend investing is patience. Businesses that have been a certain way for some time and will continue to be a certain way moving forward, are ideal candidates for a dividend investing portfolio.



Furthermore, many companies pay "Fully Franked" or "Fully Imputed" dividends, meaning that the tax on this income is already paid - any further tax payment from you is not required because of the "Franking" or "Imputation" credits (unless you make millions and pay in the highest tax bracket). Moreover, because companies paying dividends typically have a reinvestment plan, any monies you reinvest will not be the subject of brokerage fees - everything adds up over the course of 20 - 30 years!

In this video, I cover 5 ideas worth considering as part of a portfolio. Disclosure: I'm long CDL Investments Limited, and it's one of my biggest positions; I'm also eyeing up entry into ADM ~$32 and under.

 

[So_Cynical]

30 to 40 years later - ill be dead.

 

[SensibleInvesting]

30 to 40 years later - ill be dead.

That's a good point. Perhaps I should have put a caveat in the video that dividend stocks are something one needs to start early in - having said this, stocks that pay a consistent growing dividend should still make for some good passive income...