Although plenty of people have made their money in the stock market, ultimately I don’t feel like it’s the best way to prepare for retirement. There is too much uncertainty and it requires you to pay constant attention to slight movements in the market – especially if you are working with puts and calls.
But there is one exception – I love dividend stocks.
While the stock market can be good for making seed money, only dividend stocks can be considered Forever Cash assets. Remember, a Forever cash asset goes up in value, is cash-flow positive, and requires very little of your time.
When a company goes public and offers shares of ownership to the public, they have to decide what to do with the profits. Some companies reinvest the profits while others split them among the investors based on how many shares they own. The latter are called dividend stocks.
Dividends are usually paid out quarterly, although companies may set their own timetable.
If you pick a company that has good prospects for the future, dividend stocks can mean regular cash flow for the rest of your life.