Not know why you should choose which to invest in? Watch today’s video to know the difference.
00:00 have a portion of your money in Bonds
Diversify your portfolio, if you want to save your money even in times of recession. but what is the best diversification then?
00:55 Why the comparison of Bonds vs Dividend Stocks
dividends generate a monthly income, and bonds could do the same thing. this is why it is an interesting comparison. some people say i know the answer, that’s dividends. but why not in bonds then?
01:17 What do Bonds do?
Bonds have a transparent way of generating money, you buy at a certain price a share of a bond. and then you have a fixed amount of money you get from that. easy as that.
02:34 What do Dividend Stocks do?
Dividend stocks are slightly different. the moment you buy a stock, that’s the yield you get for that stock, but when the stock grows, you also get equity growth, but when value drops, you do have equity loss. so there is more risk to dividend stocks.
04:12 How to make Money through Bonds
you make money by investing at the right time, for the best amount of yield for that bond. when the yield is high, most likely the faceprice of the bond is also higher, and when the yield is lower, the face price will also be lower. once you know this. you can anticipate to this, and sell when the price is high, and buy when the price is low.
06:44 How to make Money with Dividend stocks
again, buy at the right time, buy the right company, but equity will grow along with you, once you pick the right company, and then your payout will be greater and greater over time as well. so it’s on two ends, the dividend yield payout, which is a frequent thing. and the equity growth to make your share value grow as well.
10:19 What is the better choice?
well, it really depends on your situation. what part of your life are you in. how much risk can you take, and when do you need the money you invested. for me dividend stocks are absolutely more interesting for me.
11:49 are dividend stocks a SAFE investment?
the moment we talk about money, and investing it. there is no guarantee to safety. but we can limit the risks by applying a clear strategy.
13:04 Why money can work hard for you
remember, money is scarce, and we can only spend it once. it is important to let your money work for you. in the best possible option.