One of the things I really like about owning dividend stocks is that the company’s I invest in work for me. What do I mean by that?
I spent many years working in corporate America and enjoyed that time in my life. I worked long hours and learned a lot about business, finance, and accounting. During that time, I met a lot of interesting people and did meaningful work. But as the years went by, I always thought that I wasn’t doing what I wanted with my life.
I spent my time serving others associated with the businesses I worked for. You may know how it goes: reporting to the boss, managing employees, solving customer problems and doing things to make the business better. Most noteworthy, it was someone else’s business. I focused on maximizing the value of someone else’s company and their pocketbook. Now don’t get me wrong, this wasn’t volunteer work. I did this all in exchange for a paycheck. Perhaps an annual bonus was included if the business did well.
Especially relevant, I was a rental. The company’s I worked for rented my time in exchange for compensation. My rental fee was fixed as a salaried employee. It was in the company’s best interest to get as many hours of work out me to maximize the value of the rental fee. And when they felt my services were no longer necessary, they had the option of letting me go. Now don’t get me wrong, I wouldn’t go back in time and change a thing even if I could.
HOW ABOUT YOU?
Does this sound familiar to you? Maybe you are in a similar situation working and renting out your time. Would you like to have more freedom of choice with how you spend your day? Would you like to have one or more companies working for you?
Building a passive income stream from dividends and interest is one solution. That’s what we are all about here, at Dividends Diversify. This isn’t a get rich quick scheme. It’s about adding to your portfolio of dividend-paying investments month by month, little by little to build your own stream of passive income. Each time you receive a dividend payment, you can feel good that the company that paid it is working for you.
I like to focus on companies that provide a valuable business service or product line. Companies that allocate a sizable portion of their cash flow to paying dividends. I like companies that work hard for me. Companies that are continuously building value allowing them to increase their dividend over time.
This is what I expect in exchange for renting them my money. And of course, if the company no longer meets my objectives, I let them go and rent my money to another one that does. In my mind, turnabout is fair play. So let’s get companies working for us, building our wealth, one dividend at time.
Check out the Dividends Diversify model portfolio for a few examples of where to put your money to work. Let’s have the companies and investments we rent our money to work for us, not the other way around. Do you have a good example of a dividend-paying company that has worked hard for you? Please leave a comment and let me know.
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