ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The Joys of Dividend Investing

Updated on July 2, 2019
Dallin Lewis profile image

Investing is my passion. I want to help others have the financial freedom it takes to live the rest of their lives to the fullest.


Making Money While You Sleep!?

Dividend investing is one of the more common types of investing for everyday people. I myself, do quite a bit of dividend investing. The best part about it is you can make money while you are asleep! There are few better feelings than waking up and finding yourself a dollar richer. The ultimate goal is obviously getting much more than a dollar each day, but once you get that first bit of money, you will be hooked and the snowball will start rolling.

What Are Dividends?

When you buy a stock, you are actually buying a portion of a company. It is a very small portion, but a portion none the less. Companies are constantly trying to improve and make more money. Who are they trying to make more money for? If the company feels like it has enough money to operate and expand, it may give out what we call "dividends" to the owners or shareholders. Just because you own a very small portion of a company, they will pay you for being an owner. This isn't the case with every stock, but many companies do it to attract investors.

Most stocks will pay this dividend every three months or quarterly. Some companies will even pay dividends out each month. These payments are generally 2-3% annually. So a stock that is worth 100 dollars would pay 2 to 3 dollars throughout the year. This doesn't seem like much, but with the more money you invest, the more you will get paid.

The Start of the Journey

I started dividend investing with just 50 dollars. It isn't that much and it didn't make me much money. Even though it didn't make very much money, I remember getting a small payment of 50 cents. That 50 cents felt so amazing! My money was actually making me money.

It had taken me a couple of months to get that first payment, but I had slowly been putting in a little bit more money 25 dollars at a time. Soon I was getting payments every month. Each month I was getting more and more dividends and it's addicting. With the dividends that I was getting, I just reinvested into more stocks to get more dividends. This is the addicting part is. You more you put towards dividend investing, the more you make and the more you make, the more you can put in. This snowballs until you feel like taking the dividends for yourself and for your own income.

The Ultimate Goal

The ultimate goal for most dividend investors is to have enough money invested that the dividends will pay for all of your living expenses. This requires a large sum of money, but the more time you have to let your portfolio grow, the more magic compound interest can work. This is achievable for most everyone. Just invest a small amount in dividend-paying stocks and you can start on your journey. It's not only a smart thing to do, it's an enjoyable thing to do.

A Warning

Sometimes companies will pay a dividend of around 10% of the share price. At first glance, that sounds awesome. Why would I buy a stock that pays 3% when I could buy a stock that pays 10%. In most cases, a stock that pays 10% won't be able to sustain that for very long. Soon they will have to cut the dividend and the share price will drop and you will lose a little bit of money. Look for stocks that not only pay a dividend but are growing and increasing in profit. Many stocks that pay a two or three percent dividend will increase their payment each year and will be much better in the long run.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)