The market is down which means there are a variety of stocks retail investors can buy to build wealth this decade.
The problem is identifying which stocks will create the team you need to ensure your investing success.
I’ve compiled a list of stocks along with a simple strategy that’s going to allow these stocks to compound over time so that when you’re ready, they start paying you passively.
By the end of this article, you will have the knowledge you need to begin building your very own wealth through stock investments this decade.
Let’s get started!
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Let’s dive right into it.
Compounding starts with reinvesting
The list below is made up of cash dividend paying stocks, companies with enough cash at hand which allows them to pay cash dividends to its investors every quarter.
The key here is to ensure that you opt in to ‘reinvest’ these cash dividends back into the asset so that your number of shares automatically compound every quarter.
On some occasions, the default setting is set to ‘cash’ instead of ‘reinvest’, which means your broker account will receive the cash dividend as a form of payment and settle in your funds like a deposit.
When you’ve built a strong retirement portfolio and you’re ready to claim the fruit of your labor many years from now, then you’ll want to begin taking that big cash.
But in the meantime, we’re focusing on setting ourselves up for that chapter in our lives so make sure you opt in to ‘reinvest’ that cash dividend.
Over time, you will see your number of shares grow fractionally and then eventually turn into whole numbers.
This process will continue repeating as you continue to fund your cash dividend stock portfolio.
Which Stocks Can Take Care of You Forever?
Building wealth is a constant journey of increasing your income and investing in assets that can take care of you forever.
If you would like me to publish more content on how to increase your income let me know in the comments section at the end of the article.
Granted that you have the capability to invest now during this bear market, here is a list of cash dividend paying stocks that can take care of you forever.
Related: How to Invest in Stocks for Beginners
#1. VOO (S&P 500)
Dividend Yield: 1.56%
VOO has paid $5.65 per share in the past year during the bull market but is currently paying $1.43 per share in this year’s bear market.
VOO is Vanguard’s S&P 500 ETF which tracks the top 500 performing companies in the United States.
#2. GPC (Genuine Parts Co.)
Dividend Yield: 2.40%
GPC has paid $3.42 per share but is currently paying investors during this bear market $0.90 per share.
Genuine Parts Company is an American service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials.
#3. VNQ (Real Estate REIT)
Dividend Yield: 3.53%
VNQ has paid $2.86 per share but is currently paying investors approximately $0.56 per share in today’s bear market.
VNQ is Vanguard’s real estate ETF which invests in stocks issued by real estate investment trusts (REITs), companies that purchase office buildings, hotels, and other real property.
#4. OMF (One Main Holdings, Inc.)
Dividend Yield: 7.96%
OMF currently pays investors $0.95 per share but has paid them as much as $6.80 per share during the bull market.
OneMain Holdings, Inc. is an American financial services holding company that provides loan products, offers credit cards, and other personal loans.
#5. T (AT&T)
Dividend Yield: 9.71%
AT&T is currently paying shareholders $0.28 per share but has paid investors $1.60 in the past.
AT&T Inc. is an American multinational telecommunications holding company offering internet and cellular services.
#6. NRZ (Real Estate REIT)
Dividend Yield: 9.85%
NRZ stock is currently paying investors $0.25 per share but has paid $1 per share before.
New Residential is a publicly traded mortgage real estate investment trust with a diversified portfolio and a strong track record of performance.
#7. EMR (Emerson Electric Co.)
Dividend Yield: 2.45%
EMR pays shareholders $0.51 per share but has paid investors $2.05 per share prior to today’s bear market.
Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri.
The Fortune 500 company manufactures products and provides engineering services for industrial, commercial, and consumer markets.
#8. ESGV (ETF)
Dividend Yield: 1.26%
ESGV currently pays shareholders $0.20 but has paid investors $0.88 per share in the past.
ESGV tracks the performance of large-, mid-, and small-capitalization stocks.
The ETF specifically excludes stocks of certain companies related to the following: adult entertainment, alcohol, tobacco, cannabis, gambling, chemical and biological weapons, cluster munitions, anti-personnel landmines, nuclear weapons, conventional military weapons, civilian firearms, nuclear power, and coal, oil, or gas.
Other Stocks?
Investing in other stocks that aren’t paying cash dividends could be a great way to raise capital fast.
One example is Tesla, AMC, GameStop, etc.
Retail investors who were able to jump on these stocks early were able to capitalize on massive price fluctuations.
The key here is to get in early, otherwise you may end up holding substantially large losses.
If you’re going to invest in individual companies, make sure you’ve done your due diligence and cash out when in profit.
Send this list to someone you know!
Share this list of the best dividend stocks to buy right now with someone you know who is invested in the market.
I personally hold these stocks in my stock portfolio and figured I’d share with my readers which dividend stocks I recommend checking out.
I’d love to hear your thoughts on this list – do you hold any?
Leave a comment down below.
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I have JP Morgan Chase down badly, Do you think is going back up anytime soon, and of of course I’m HODLing my AMC and APE.
Nice timing. I started rebuilding my portfolio while I continue to hold AMC and APE. My focus is dividends. I wonder what your thoughts are on Realty Corp, ticker O. They pay monthly dividends at 5% currently and focus on commercial properties.
Another great dividend stock, I just don’t own it! I personally keep a tight group oppose to buying many. This allows me to grow each security instead of stretching thin with many.
Let’s start a discussion! Leave your thoughts below.