The topic of "Dividend for Living" is one of the topics that is often the subject of discussion in the stock world. Simply put, dividend for living means that you only rely on the distribution of dividends, and you use the dividends to finance your daily life.
"Mr. Heze, so is it really possible if I want dividend for living?" Ask you
The answer: Yes. But if you want to be able to live only on dividends, you have to understand how. And of course you have to avoid certain stock criteria if you want to get dividend for living (even though the company regularly pays dividends). Okay, now I will start discussing things that you must prepare if you want dividend for living.
The first thing you have to prepare if you want dividend for living is: CAPITAL. If you are reading this post: The Safest Way to Invest in Stocks, I will write down an important point, that you must have jumbo capital in order to live off dividends. Why?
Because if you only use a small capital, the nominal dividend you will receive will be very small, and cannot meet your daily needs. Large capital I mean at least you use capital above Rp500 million.
Because you put in that much capital, then you have to sort out the companies that always distribute the dividends in BIG AMOUNT, ROUTINELY and of course NOT FAKE COMPANIES. Usually, these companies are blue chip companies with established performance.
In fact, blue chip companies can distribute dividends more than once a year. This is of course very beneficial for you. Only by capitalizing these 2 things you can live off dividends.
"Ohh I see".. You think..
"Then what things should I avoid when choosing a company that distributes dividends?" Ask you
Well, here it is... When you want to invest with the aim of dividends for living, then you can't just choose a company. It doesn't mean that when you find a company that regularly distributes dividends, it means that the company is worthy of investment.
If you decide on a dividend for living, then avoid companies with the following criteria:
- Still growing even though dividends are distributed regularly (because dividends are usually distributed in small amounts). A company that is still growing cannot be predicted whether it will be established and become a leader in its industrial sector.
- Companies that do not regularly distribute dividends
- Companies that are far from industry sector standards (in terms of profit, turnover, assets, equity).
- Companies that often distribute dividends but the industry sector is not clear.
