I’ll never forget the first time I got dividends paid into my brokerage account from the first shares I ever bought. To say it was a wonderful feeling is an understatement. The thought occurred to me that being a part owner of a company is so much better than being an employee where you work your socks off for the benefit of someone and else and always have the worry of being laid off. It was passive income at its best.
The first dividend payment felt like a whole new way of viewing the world. Even though the amount i received was small, the impact it has had is priceless. I said to myself, ‘ someday this £20 dividend cheque will be £200 than £2000 if I kept adding to it and reinvesting it. I have been trying to change the views of my family and friends ever since and that is one of the primary reasons I started this blog. To many of the people I know, they think that stocks are only for the wealthy. Another obstacle they face is that they think that receiving a £20 dividend cheque is too small and not worth their effort.. What they don’t understand is that although the dividends you receive will be small initially, they will only grew over time with the right investment approach. And this is the biggest mistake most people make they think they have to start with an entire Napoleon-like army. They suffer from the “not enough” mentality; namely that if they aren’t making £1,000 or £5,000 investments at a time, they will never become rich. What these people don’t realise is that entire armies are built one soldier at a time; so too is their financial arsenal. So even if you have £250, my opinion would be to start investing and to add to that investment over time.
Even though I am still in the process of changing the views of many family members, I can already see signs of them changing their mentality. A family member just asked me the other day if “TalkTalk is a share he could own”. This made me jump for as i knew that the seeds of investment have been planted.
Another friend of mine just recently asked me if he could buy shares of the cigarette brand Dunhill. He is a smoker and knows the power tobacco companies hold over their customers. His favourite brand is Dunhill and he stated that he may as well make money from a product he used at least three times a day.
All in all, dividends changed the way I view & how my family and friends view life and wealth. A lot of people think you need to be super smart to understand stocks and do well in them. Whilst you do need carry out research (look at stock flare for this) to check if the financial ratios are appropriate before buying any stocks, some of the best investments are right in front of you. After all, it wasn’t the City or Wall Street that recommended the best investment I hold today, it was my dad!