Things You'll Need:
- brokerage account money
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Step 1
Get a brokerage account such as tdameritrade or sharebuilder or another low cost broker. Sharebuilder is handy for dividend investing because they will reinvest your dividend payments back into the same stock for free.
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Step 2
Once you have a brokerage account you will need to research stocks and their dividends. In this treacherous market many blue chip companies are paying over 5% per year. Can you get 5% or more in a savings account? The other great thing is that your stock can also go up in value and your dividends too.
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Step 3
Narrow down your companies with good dividends. I would look for companies that pay 5-10%. Companies that pay above 10% can be something of a red flag. Make sure to study your stocks using something like yahoo finance. Make sure the company doesn't have too much debt and their dividend is sustainable through their earnings.
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Step 4
Hold your dividend stocks hopefully for decades. Let your dividends buy you more shares. Hopefully the stocks will increase their payment to you over time. So don't let this great opportunity pass to build a strong income stream with stocks.
