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Should You Invest In Dividend-Paying Stocks?
When you buy a share of a companys stock, you become a part owner of that organization.
Many investors choose to buy stock in companies that offer dividends, as they providepredictable cash flow.
Stephan is one of those investors.
He explained that he makes $10,000 per month through five main dividend sources.
While dividend amounts can change, theyre much less volatile than stock values.
Dividends also can provide some tax benefits.
Companies that perform poorly may cut their dividend, resulting in less value or even a loss for investors.
The IRS also taxes dividends differently than regular stocks.
When buying and selling stocks, the IRS taxes you only when you sell.
Earning Passive Income Through Dividends
Everyone has a different standard of living.
Bureauof Labor Statistics Consumer Expenditure Survey, finding that the average retiree spends about $50,000 per year.
For many, this is a substantial amount of money.
Dividend investing can be an excellent way to earn money, but there are still risks.
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