I truly believe that every individual should have dividend paying stocks in their investment portfolio. Here are 7 great reasons why this is the case!
In this article by the Globe and Mail in Canada, it says that if you earn almost $50,000 of eligible Canadian dividends and have that as your only income source, then you don’t pay a penny in income taxes. Now isn’t that impressive?
If you were receiving a 3% dividend yield then, you would now be getting a 7.92% dividend yield for your initial investment. Do you think you could have gotten the same raise at work?
In fact, you should be looking to invest more in these stocks as you’ll be able to buy these amazing companies for such a cheap price. It’s like stocking up on a bargain, only you’re accelerating the pace at which you can reach financial freedom! And this is actually very important. If you’re serious about reaching financial freedom, you want to find the best ways of achieving it with as little effort as possible. Once you determine the types of investments you’re after, then why wouldn’t you buy more of that investment if it’s available at a cheaper price? Obviously, you need to do your due diligence to ensure that the investment itself hasn’t dropped in level.