Dividend Investing Explained (For Women)

passive way to make money by investing is by investing in hi and welcome or welcome back to the channel if you're new here hello I'm Vanessa and on this channel we talk all things earning more and Building Wealth and today girl we have a really good one today we're talking about passive income because this is a topic we as women don't talk enough about and so we don't know all the ways that we can generate passive income for ourselves for our families for the generations after us but that's about to change because in this video we are talking all things passive income so first we're going to talk about this magical passive income thing that's called dividends and then later in the video I'm gonna tell you how I generate passive income from it so if this is the kind of content that you like if this is the kind of content that you enjoy then please go ahead and hit the like button one it's free two it supports the channel and it helps this video go out to more women like you we are talking about the absolute best passive income idea for women and why have I called it the absolute best passive income idea that's because it's one passive income idea that doesn't require social media doesn't require you to run a business and it's actually truly truly passive now what it is not it's not a get rich quick scheme it is called dividend investing because going into next year we want to be leveled up financially and we want to be hitting those goals in fact what are your financial goals for 2023 let us know down in the comment section today I'm going to teach you what Dividends are what strategy makes the most money and how you and I can easily get started what is dividend investing we don't do textbook definitions over here okay let me break it down to you in a way that's popping when you buy a stock of a company what you're buying is a tiny percentage of that company so you are an owner So when you buy Apple shares you own a little piece a Time a slice of apple so when Apple makes a profit if Apple decides to give out some of its profit to its owners you get a check you get a check you all get checks passively you don't have to be involved in running the business once you invest in a dividend paying company if they pay out dividends you get a check now as wonderful as this sounds not all stocks pay out dividends and that's why financial literacy is important and why I teach this stuff we have two kinds of stocks growth stocks and value stocks but don't worry about it I'm gonna break it down for you when you buy a growth stock you're buying a piece of a company that's growing rapidly so think Tech growth stocks are typically newer companies that are growing at a rapid rate So when you buy a growth stock the goal is to sell it for a higher price than what you bought it for for example the dream is to buy a stock for a hundred dollars and sell it for over a thousand dollars and make a profit something we call capital gains but that's not the only way to make money from stocks a more conservative and a more long-term and a more passive way to make money by investing is by investing in value stocks now value stocks also known as Blue Chip stocks are stocks of companies that have been around for a long time we trust these companies they haven't failed in decades some of them haven't filled in centuries and a lot of them have been paying out dividends consistently for 25 years or more those are the Blue Chip stocks that we specifically call dividend Aristocrats we trust them they deliver to their investors those are the ones I put my money in remember this is general information it's not Financial advice I'm sharing with you what I do but I've chosen to put my money in dividend Aristocrats because there are healthy companies that have been around for a long time they've consistently paid out dividends to their investors and I love the passive element of it because it's one thing to get paid for actively putting out value into the world which is active income from your job or your business or your platform whatever it is you do to generate income but it's another thing to sit back and relax by the pool while your checks just keep coming in I like that we are here for working for money but also making our money work for us but how do people know which ones to put in their portfolios and which ones will make the most money and how do we navigate the risk that's involved in investing that brings me to point number two for new investors it's usually very difficult to decide what stocks to put in a portfolio so instead of relying on just one stock it's usually best to get a whole basket of eggs so if one cracks another one can be healthy and that's where something called an exchange traded fund or an ETF comes in ETFs are usually a group of stocks that are bundled together and sold at one low price and that's how a lot of the smart women are investing in dividend-paying stocks instead of hand picking what you think is good and just guessing along the way it's usually best to get a bundle that's already been selected by really smart people some of them already track indexes so for example there's something called the S P 500 which is an index of the top 500 companies in the US right now of those top 500 companies there are some that pay dividends and those ones that pay dividends have already been bundled into an ETF when you invest in a whole bundle you're in a safer position because when one goes wrong another one would go right but if you want to understand this concept better then after watching this video watch this one now how do we get started investing back in the day you had to go to a brokerage company and speak to someone get yourself a financial advisor but today everything can happen on your smartphone now we have companies like Vanguard and Fidelity which are more traditional and we also have fintechs like wealthfront Robin Hood Weeble these are all apps that allow regular people like you and I get started with investing passive income doesn't have to be abstract you don't have to fall for scammers dividend investing is one of the ways to get started generating income that doesn't require you to show up actively to make money if you've made it to this point of the video congratulations girl you're serious about getting your financial life together and I'm looking forward to seeing your growth in the coming year remember that I'm rooting for you so please do not stop rooting for yourself and until next time please take care