Personally, I only keep what I need for monthly expenses and emergency fund in my savings and checking accounts. The rest are in money market for investment purposes. Out of the investment fund, I take a portion and invest in stable or blue chip dividend stocks. I found that with relatively low investment, some can pay a decent rate of return.
For example:
Stock A at $9.5 per share has a dividend yield of 8.59% and pays quarterly. At 1000 shares, the cost is $9500 and pays approximately $200 every quarter, or $800 annually. That is an annual rate of almost 9%.
Stock B costs $9830 per 1000 shares at the time of my purchase, and pays 9.5% or approximately $77 per month.
Stock C costs $6800 per 1000 shares, and pays $420 annually.
Compared to the average savings account which pays only 0.51%, these are much higher yields. With an investment of approx $26,000 in just three dividend stocks yields over $2000 per year. I may not be the sharpest crayon in the box. But I personally think investing in dividend stocks pays. Granted, you would still have to do homework and investigate the companies you invest in, and there is always a risk to the loss of capital as with any investment. But, this is a low risk alternative to saving accounts for me.
M. M. Munn
Disclaimer: Neither Michael Munn or From Our Point of View is an investment advisory service, nor a registered investment advisor or broker-dealer. It should not be assumed that the techniques, methods, or indictors presented in these products or presentations will be profitable or that they will not result in losses. You should always check with your licensed financial and tax advisor(s) to determine the suitability of any investment.
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