Hey readers did you know that December is the ultimate month for dividend income. Most companies pay dividends and capital gains in December, and it has me smiling all the way to the bank. I enjoy the Holiday cheer in this month, because of the unity I get from joyous gatherings with family. All extra money injected into my retirement accounts is just gravy. As of right now I am reinvesting all those earnings to net me more shares and more income for 2014. The compounding effect is growing and I am happy to know that each penny earns me more shares every year. If you grasp this financial tip early on in life you will grow assets exponentially. I wonder if all you readers feel the same way about Dividend December being a great month. If you are not aware then pay close attention to what you are earning in investments, it will allow you the information to make necessary changes for the future.
Dividend December is the Best!
Maybe it is the holidays that have these mega companies and mutual funds filled with generosity to bless the shareowners. Maybe they need to close out the year by distributing all the extra cash to shareholders, to avoid paying taxes. (Most of the executives are big time investors in their own companies, and that means a bonus for them as well) I hope I can top my dividend income from 2012, even though last year was a very unique year with all the political tax hoopla around dividends being taxed higher. I guess only time will tell what will happen. Either way I am excited to tell you that if you value growing your assets you must buy investments that pay dividends and capital gains, because you can effectively keep inflation from taking your money.
Another tactic you can implement to increase your dividends in December is to look for those companies that pay out on a quarterly schedule ending in December. If you do a little research it would be the companies that begin paying dividends in March and usually end the year paying in December. Enter the company name in a search engine and enter EX-Dividend right after the name, this should provide you with the information required.
If all goes as planned I will hopefully make about 35% -40% of all my dividend income in December. How about you guys do you keep track of all the dividends you make every month?
Comment if you had an excellent Dividend December and if you will reinvest or take the cash?
Rich Uncle EL
When cyclicals start paying back a dividend and if one can buy in cheap then future dividend yields can be quite pleasing.
Yes that is financially smart to buy low, and the future yields will be a great benefit. Keep your eyes open for those great deals Jake. Thanks for stopping by.
I just reinvest most of my dividend, so the dividends sort of go under the radar unless I consciously look for them! Glad no company in my portfolio cut dividends!
Yes great strategy as the shares will keep growing. I like to keep track of them, so that I can sell shares in those who pay very little, and increase shares to those stocks who pay more. Thanks for the comment moneycone.