There are many ways how to make money with stocks. Today I want to talk about three of them:
1 – Dividends Income
This is an option favored by many people who invest in stocks because it provides them with a predictable income. As long as you keep your share you will get paid a certain amount of dividends each year which can make a nice portion of your income. But beware: depending on your country’s laws dividends may be taxed just as high as any other regular income source.
2 – Dividends Accumulation
Another way for a company to (indirectly) reward their share holders is to accumulate their percentage. So instead of paying you a dividend income the company will keep the amount to reinvest it into their business with the goal to further increase the value of each share. That way you could „accumulate“ more value to sell it at a higher price.
3 – Buy Back
Sometimes companies decide to buy back a portion of the shares they had been giving out over the past which results in less shares that are free to trade and therefore the value of each individual share will go up. In that case you would also benefit as a (long term) share holder.
Watch my live recording for more information with examples: