Dividend Investing For Beginners

In this video, I provide a Beginner’s guide to dividend investing. I’ve been growing my dividend portfolio for over 13 years and now generate an average of more than £1100 a month. All journeys start somewhere however and I demonstrate how to achieve a simple first goal of generating enough passive income to cover the cost of a cup of tea every day. I demonstrate how to do this in real time by using the trading platform Freetrade to buy enough shares in a typical FTSE 100 company to afford the cost of a daily cuppa. I also show my own journey and the importance of setting small achievable targets along the way. The idea is not to focus on the final destination but instead on the next target. In this way we remain focused and motivated as we work towards the next short term target. This may help you also to appreciate the psychology of investing and what an important factor this to have the correct investing mindset. I then discuss possible companies one might invest in to generate reliable dividends. I also reveal a selection of Exchange Traded Funds which could also be used to generate passive income while increasing diversification. I’ve growing my portfolio for 13 years by simply investing spare money each month into large established companies mainly UK companies in the FTSE 100. I follow a similar strategy to Warren Buffett. Many of these companies are global giants earning much of their revenue from around the world. I prefer large established companies which pay reliable dividends simply because I find this highly motivating seeing monthly payments flowing in. I always reinvest the dividends and allow them to compound over time. Regular investing into dividend shares allows you to generate a stream of passive income which grows over time. The end goal is to achieve financial independence and retire early. I keep an emergency cash fund in Premium Bonds. My stockbroking platform is Barclays Smart Investor which allows me to buy individual companies in the UK and a wide range of funds including Exchange Traded Funds from around the world. I make good use of a stocks and shares ISA to protect my investments from tax. My videos act as a good beginner’s guide to investing. The companies / investment instruments I mention in this video are Sainsbury’s (SBRY), iShares Core FTSE 100 ETF (ISF), iShares UK Dividend EFT (IUKD), SPDR S&P UK Dividend Aristocrats ETF, Vanguard FTSE All-World High Dividend Yield ETF (VHYL)

The information presented on this channel and in these videos is for entertainment purposes only and is not financial advice. The price of shares can go down and well as up. Investing in shares is not appropriate for everyone so please do your own research.

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