Investing in physical properties isn’t for the faint of heart, but if you want to become wealthy, it’s a smart thing to consider. An income property could work very similarly to dividend stocks in that you’ll have the potential for that asset itself to appreciate in value over time, but in the meantime, you’ll collect regular payments (in this case, rent) that you’ll then have the option to reinvest. 3. Look at real estate
If the idea of owning property doesn’t sit well with you, there’s another way to invest in real estate — buy REITs, or real estate investment trusts. The great thing about REITs is that they’re set up to pay dividends from the income they generate, so like income properties, they could be an ongoing source of cash. Plus, REITs tend to follow their own pattern so that they’re not necessarily impacted during periods of general stock market volatility (though that’s not always the case). Or, to put it another way, if you build a portfolio of stocks and REITs, you’ll buy yourself some built-in protection against market downturns by having that diverse mix. Dividend stocks can be an important tool on the road to building wealth. Not only do dividend stocks have the potential to gain value over time but, as the name implies, they share the wealth via quarterly payments that you’ll then have the option to reinvest.
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