Are you thinking of the best stocks paying franked dividends to invest in? There is more to trading the financial markets than meets the eye. There are lots of financial instruments or assets to trade in — from indices, options, and shares, amongst others. However, one asset that is often spoken about and is on the lips of virtually everyone around the globe is stocks. There are a lot of people out there seeking knowledge on how to get into the stock market and find the best and fast growing stocks to invest in that pay dividends.
Regarding stocks to invest in, there are a lot of factors to consider. You need to make time to research the different stocks — assess the stock market report, and identify stocks with potentially high returns on investment such as those paying franked dividends.
Finding the best stocks paying franked dividends to invest in is not difficult as most people make it out to be. However, if you undertake scouting for the stocks to put your money into without ample knowledge of the stocks market, the chances are that you will end up with “drowning stocks”.
Best stocks paying franked dividends to invest in: What are the basics of investing in stocks?
You can think of stocks as buying shares or purchasing bits of ownership in a company — whatever amount of ownership you are able to buy in a company is known as your “share” in the company. And to do this, all you have to do is get a brokerage account and buy stocks paying franked dividends that fit your investment plan.
The idea behind investing in stocks is to buy the shares of companies with promising growth potentials and that offer franked dividends. As the company continues to grow, the value of their stock will increase equally, and you can decide to sell them at higher prices to investors who are willing to buy from you. That way, your profit is the difference in price when you bought the stock and the price you sold at.
Having mentioned that, let’s take a look at how you can find the best stocks paying franked dividends to invest in.
Top tips for finding the best stocks paying franked dividends to invest in
As we mentioned earlier, investing in stocks can be daunting if you don’t have enough knowledge about the stock market in your arsenal. Contrary to popular misconceptions, trading stocks is not rocket science, and you only need to follow these simple steps to find and choose the best stocks paying franked dividends to invest in.
Let’s take a look at the steps;
Step 1: How do you want to invest in stocks
There are quite a number of ways by which you can invest in stocks. If you are looking for the best stocks to invest in, you should ask yourself these important questions; do you want to find the stocks yourself, or do you prefer having another person manage the process for you?
Finding stocks to invest in by yourself means you have to learn the different how to read charts and interpret stocks report to choose the best stock. On the other hand, having an amazing expert manage your account means you are letting another trader help you manage the process. In this case, you are only going to provide the capital while the other party handles the technical aspect.
Step 2: Choose your investment account — do you want to open a brokerage account or a Robo-advisor account.
Step 3: Look in the way mutual funds or exchange-traded funds (ETFs) — what this means is put your money in different stocks rather than buying single stocks. That way, you won’t lose all of your money if the stock market decides to develop a mind of its own. You could look in the direction of the S&P 500.
Step 4: Think long-term investment when choosing the best stocks paying franked dividends to invest in and ensure proper risk management.