5 Dividend Investing Tips That Could Earn You Thousands

5 Dividend Investing Tips That Could Earn You Thousands

The novel coronavirus (COVID-19) pandemic has gutted many dividend stocks over the past month, as investors worried that the abrupt disruptions of cash flows would force companies to cut or suspend their dividends.. We can't really consider AT&T an "accidental" high yielder .. Coca-Cola's ( NYSE:KO ) stock also slid about 20% over the past month as its forward yield nearly hit 4%.. Always enroll your stocks in dividend reinvestment plans (DRIP), which automatically use dividends to buy additional shares of a stock.. If you had reinvested those dividends, you'd be sitting on a total return of 236% instead.. Dividend stocks might seem dull, but they often generate stronger and more stable returns than volatile growth stocks over the long term.. Investors should do their homework , avoid chasing high-yield traps in battered sectors, always reinvest their dividends, and maintain a long-term view of the market..