They’ll help you build wealth in two ways:
Capital Appreciation & Dividends
Note: There are about 10,000 publicly traded companies in the US Stock Market, and you can purchase any of them. How do you know what to buy!? How many? So, if you have trouble, please do seek professional investment help. HOWEVER, that does not excuse you by any means from learning the basics about stocks.
I’m going to do my best to make this all easy for you, so stick it out. You’ll gain so much knowledge that eventually you can invest the money yourself! That will add extra money to your pocket because you’ll cut all of your advisor’s fees. Ha. With time though my friend.
Back to Capital Appreciation and Dividends.
Dividends-some companies generally the older, more established, like GE for example, return a portion of their profits to investors in the form of dividends instead of reinvesting it back into the company. Dividends can be paid in cash or in additional company shares.
A stocks dividend yield is the ratio of the dividend to the stock price. For example–a stock that has a $100 share price and pays annual dividends of $5 per share has a dividend yield of 5%. This will change with time as the share price fluctuates.
