It can be really overwhelming as a beginner investor in the stock market. More often than not, newbies only notice or only care about the stock prices and movements, which is essentially out of anyone's control. But as soon as you understand that buying stocks is you actually buying a portion of a company or a business, it gets a bit easier (and interesting).
As a dividend investor, the bulk of your work will be done right off the bat. You'll be researching companies, their founders, their current top executives and board of directors, and of course, their financial statements. And in my view, the most complicated part of this process is reading financial statements and trying to make sense of it. But trust me, once you get the hang of it, reading these long pages will become easier and more exciting.
Once you've read (or skimmed) through a financial report, you'll understand how the business work, where it gets most of its revenue, why their revenue is up or down this quarter or year, and what the future plans and goals will be for the business to continue its profitability. There's a sense of achievement (at least on my part) as soon as these seemingly complex text and figures before eventually makes sense to you.
After identifying a good dividend paying stock, you'll just consistently buy in regardless of the price. As Warren Buffett famously said, "Our favorite holding period is forever."
💲Peso Smart PH is a channel that aims to educate Filipinos on how to handle their money better, invest in the stock market, take advantage of compound interest and discuss all things personal finance. I'm an avid fan of Warren Buffet, Mark Cuban, Gary Vaynerchuk, Robert Kiyosaki, Og Mandino and Tony Robbins. I wanted to share this journey with you guys to broaden my understanding and knowledge in the world of investing, money and wealth.
📃 Disclaimer: I'm not a financial advisor and I simply share my experiences and knowledge in the Philippine stock market. All my content are made for educational and informational purposes only and should not be deemed as financial advice. Trading stocks, cryptocurrencies and ETFs poses a risk of loss.
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