How to Make Money from MTN Dividends as PASSIVE INCOME
Let me show you how you can make money monthly using dividend stock investment and you can let your money work for you while you sleep in this blog I'm going to show you how you can make money in dividend paying stocks like MTN that is a great way that I've have been using to grow my wealth consistently within the past years so whether you are a beginner or have been investing for a while this blog is for you make sure to stick to the end of this blog because we are going to break everything down how we are going to use dividend paying stocks
to make a lot of money to build our world hi everyone welcome back to the channel if you are new here my name is Benjamin and I'm passionate about helping people make smarter financial decisions we are diving straight into dividend invested with a focus on MTN one of the most prominent telecommunications in Africa as a whole by the end of this blog you will have a clear understanding of how to make money with MTN dividend to grow your wealth whether you are looking for passive income or maybe you are looking for a
long-term growth strategy this blog is for you so make sure to stick to the end let's start with the basics what are dividend stocks dividend stocks are shares of companies that pay a portion of their profit to shareholders as dividends think of it as a reward for investing in the company companies like MTM pay dividends regularly typically um whether ctly or annually for example if you earn 10,000 shares of MTN and they announce a dividend of 30 PES per share you will receive 3,000 Ghana cedis in dividends for that period sounds good
right but why do companies like MTN pay dividends in the first place it's their way of sharing profits and encouraging loyalty among shareholders but that is not all dividend stocks are often an indicator of a company's Financial heal companies that consistently pay and grow dividends demonstrates stable earnings and sound management you know this is one of the reasons why MTN has been a favorite among investors especially in Africa let's look at how dividend stocks work first you need to own shares of the company to qualify for dividend you must
hold the stocks before the X dividend date this is the cut off date set by the company after this date new buyers aren't eligible for the upcoming dividend payout once the dividend is announced the company pays it out on the payment date that is so simple for MTN they consistently pay dividends over the years making them a favorite among income focused investors here is another key Point dividend stocks like MTM don't just provide income they can also appreciate in value over a long term so you are not only earning dividend but
also benefiting from the stocks potential growth to get it so it's a win-win situation when you choose a strong company like MTM now let's weigh the pros and cons you know every investment has some pros and cons let's look at the advantages first first one is passive income dividend provide a steady stream of income without you having to sell your shares imagine receiving money regularly just holding on to your shares you know it's exciting right the second Advantage is reinvestment opportunity you can reinvest your dividend to buy more
shares compounding your returns over time this strategy accelerates Your World building process the next one is stability companies that pay dividends are often financially stable and less volatile the next Advantage is dividend paying stocks hedge against inflation over time growing dividends can help counter the effect of inflation these are some of the advantages of holding dividend paying stocks let's look at some of the disadvantages of investing in dividend paying stocks dividend paying companies May reinvest Less in
growth opportunities compared to non-dividend paying companies the second one is Dividends are not guaranteed companies can suspend dividends during financial difficulties impacting your expected income so let's say there will be times companies might not be able to make their expected profits such issues happen you know sometimes it will be very difficult for them to share their profit with you so you don't have access to dividends the third one is Market risk like any other stocks the value of the shares can go down potentially
eroding your Capital if you are investing in a good dividend stock these issues won't affect you that much so from my experience the advantages far outweighs the disadvantages if you in invest wisely dividend investing provides a unique mix of income and growth potential here is how you can get started with building a dividend portfolio so first you need to set your financial goal you know you have to determine whether you want a regular income or a longer term for instance I started investing in dividend stock to
cover some part of my monthly bills the next one is you have to research in the companies look for companies with a history of paying consistent and gr dividends like MTN MTN is a great example the telecommunication sector check your dividend yield payout ratio and Financial Health the next one is to diversify your portfolio you know you need to reduce risk don't put all your money into one stock spread your investment across Industries like the mining and finance this will help protect you from any uncertainties the
fourth one is to start small even owning a few shares can yield dividend remember small steps lead to significant Milestone reinvest dividend use your dividend payout to buy more shares the strategy also known as DP that is dividend reinvestment plan accelerates your wealth building process over time you will notice how compounding works it magic that will show you how compounding works it magic the next one is to monitor your portfolio you need to stay updated on companies performance industry Trends and economic conditions
adjust your portfolio as needed to ensure it aligns perfectly with your goals remember patient is critical in dividend investing focus on the longterm and make a lot of money so let's look at some of the best practices and strategies for dividend investor to maximize your return in dividend investing here are some of the best practices that you need to follow number one is to focus on dividend yield and payout ratio a high yield is attractive but a sustainable payout ratio is crucial mtn's payout ratio is a good
indicator of its ability to maintain its dividend number two is to keep an emergency fund you should never invest money you might need soon Dividends are great right but stocks prices can fluctuate always have a safety net the next one is to stay in I mean keep an eye on the company's news and sector trend for example examp Le MTN recent expansion in fintech has made it even more appealing to investors staying informed helps you make better decisions when you get updates from the company the next one is to have patience you
know dividend investing is a long-term strategy the longer you hold your shares the more you benefit from compounding the next one is avoid chasing high yield high yields might indicate financial trouble instead focus on companies with a track record of stability and growth so I bought my first shares of MTM way back in 2018 at the time I didn't know much about dividends but I was insured by the idea of earning passive income I reinvested some of the dividends I received back into the shares and over the years it has been helping me grow my
portfolio and also giving me Financial flexibility a friend of mine also started with investing in dividend stocks like MTA a friend of mine also started investing in MTN stocks with just 5,000 GH cedis by consistently adding to his portfolio he was able to reinvest his dividends and he has built a solid income stream over 5 years the key is consisten you know dividend investing is one of the most reliable ways to build your world over time it's not a get R quick scheme but with patience and discipline you will see the
rewards if you found this blog helpful don't forget to like and share and subscribe for more content on personal finance and investing see you in my next blog