[ EPISODE 18 ] Income Investing’s Hidden Advantage

The Secret Way to Acquire Income Stocks...READ MORE
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The Secret Way to Acquire Income Stocks
Dividend paying stocks provide a lot of value. Besides putting cash in your account on a regular basis, dividends are taxed at a lower rate than just about any other kind of income. And if you hold shares forever, you won't have to pay capital gains taxes.

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And that doesn't even begin to cover the power of compounding your wealth with dividend payments over time. That can turn a small investment into a sizeable fortune.

But there's one other advantage income-generating stocks have. Rather than open up a brokerage account, many dividend paying companies allow investors to invest money directly with them instead. Investors can get set up for as little as $50, and once set up, can make additional payments as well.

These company-driven plans provide investors a way to directly invest with a company, and get set up to reinvest the dividends paid over time. For folks just getting started with investing who don't have a lot, this plan maximizes the value of dividend investing compared to setting up and funding a traditional brokerage account.

This system is widely available, yet little understood, most likely because most companies that offer it do little to explain the process and how it works.

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