Q. “My question is really basic and so please bear with me… I have been wanting to invest in shares for the last three years and I would very much like to receive dividends as a passive income. Could you please explain what dividends are exactly and why a company would pay dividends to shareholders?”
A. I am always happy to answer these questions, because we all have to start somewhere w... ››› more
You've probably heard the famous story of how Warren Buffett grew Berkshire & Hathaway into a multibillion dollar business. Or how the king of value investing, Benjamin Graham conquered the US stock market through the Great Depression.
But have you heard of the investor who managed to earn $19 million for his fund in just one year?
An investor who also managed to outperform the stock mark... ››› more
If you've been holding Redefine Properties (RDF) shares, you have an important decision to make. You see, the company is paying a dividend of 41.70 cents for the six months ended 29 February 2016.
You need to choose if you want to receive the cash dividend or use the dividend to reinvest to buy more shares.
The biggest advantage of reinvesting your dividends is compounding
You accumulate... ››› more
Managing your monthly income can be a difficult task. There are so many expenses and bills to pay.
But you have to allocate a certain amount of money to put into savings so that you can start to build a nest egg.
Having savings in the bank gives you financial security. And importantly, it means you can let compounding work.
Let's take a closer look…
What are your financial priorit... ››› more
By reinvesting any return you receive from an investment, you can benefit from the power of compounding.
Compounding provides you with a way to let your money snowball over the years.
So which asset does compounding work best with?
Read on to find out…
How best to make use of compounding
Compounding works at its best with shares.
You can see this with a study Professor Jerem... ››› more
Investing with a long-term horizon has many benefits. By buying quality shares that pay dividends, you can stick them away and almost forget about them.
This is because your investments will benefit from compounding. It's a powerful way to build your wealth. It even works with your savings.
So what is compounding?
Read on to find out…
The ins and outs of compounding
Albert Eins... ››› more
Do you want to preserve your capital and see a return on your nest egg for a specific financial goal in the future?
Maybe you're nearing retirement. Or perhaps you're saving up for a large expense, such as school fees for your children or a deposit to buy a home with.
If this is you, how can you use investing to help you achieve this?
Read on to find out…
Investing to pay for a fu... ››› more
The primary reason for investing is to grow your money. Yes, you may be after income from dividends too, but you want to buy shares and watch their share prices rise over the years.
So how can you increase your chances of making money through investing in the stock market over the long-term?
Read on to find out…
How compounding can work in your favour when you invest
You may have ... ››› more
If you're an income seeker, you no doubt have some dividend paying shares in your portfolio.
But did you know that you can make these dividends work for you? You can use your dividends to grow your investment amount.
It all comes down to compounding.
So what is compounding? And how can you use compounding to grow your investment?
Read on to find out…
What is compounding?
Com... ››› more
If someone asked you to mention a highly successful investor, chances are Warren Buffett would be at the top of your list. Warren Buffett's investments have consistently performed on the stock market for over five decades.
The sad fact is many investors won't see a fraction of his success. And that's because they're not letting their investments work for them.
So how can you make money on th... ››› more
As an income investor, you're looking to invest in the best dividend paying stocks. You want to build a portfolio of shares that, over time, increases your dividend pay outs.
But do you have a plan to make your dividends work best for you? Unless you need your dividend income to live off, what should you do with it?
There are two ways that you can make your dividend income work best for you.... ››› more
One of Warren Buffett's infamous sayings is: ‘Lethargy bordering on sloth remains the cornerstone of our investment style'. In other words, not doing very much.
If you invest in companies that are at the top of their game and continue to perform, you can practically sit back and watch your investment grow.
It all comes down to investing in great, solid companies and reinvesting your divide... ››› more
One to way to grow your wealth is to buy investments that generate an income.
Investments that tick this box come in a variety of different forms. You could receive rental income from property, interest payments (or coupons) from bonds or you can get income from shares as dividends.
Income investments hold the key to growing your wealth over time. One great way to do this is to reinvest you... ››› more
Arguably, one of the best ways to prepare for retirement is to have a few different means at your disposal. This gives you some diversification and reduces your risks if something untoward was to happen to one of your plans. For instance, you may have a retirement annuity, a pension scheme through your job and a bumper savings account. And if you haven't thought about it before, you can put some m... ››› more
“Francois, I have R20,000 that's been lying in a savings account for 20 years now - I've finally decided I want to invest the money and make a return to supplement my retirement…” - M
So M wants to invest her money after years of keeping it in a savings account. Turns out she received R15,000 cash 20 years ago as part of her inheritance.
But then she made the biggest mistake she possib... ››› more
If you haven't already, you need to think about your retirement. Once you've decided how you'd like to spend your retirement, the crucial thing you need to work out is how you're going to achieve that. You need enough money coming in to allow you to live your golden years comfortably. Read on to discover an option worth considering…
How do you want to spend your retirement?
The sooner you s... ››› more
If you want to accumulate serious wealth by investing in the stock market, it takes time. There are no shortcuts. Of course, you could turn to trading or more speculative investments to try and boost your returns. But if you want to take the less-stress approach, there is a strategy that can help you achieve this. Read on to uncover what this is and how to apply it to your investing…
If you w... ››› more
Two of the most important, fundamental concepts for investing success are diversification and compounding returns. No matter how experienced you are as an investor, it's important to always think about these two ideas when committing your capital. And for beginning investors, the sooner you understand these concepts, the sooner you are on the road to building your wealth. Read on to discover how y... ››› more
Over the long sweep of your investing lifetime, strategies that only work extremely well in certain market situations are unlikely to play a dominant role. The big secret therefore is something you can use all the time, for your entire life, as an investor. And here it is: Some companies are much better than others at compounding capital. Much better. Read on to find out more…
If your goal as ... ››› more
This is the time of year for making New Year's resolutions. And if you want to make your portfolio bigger, fatter and wider a year from now, then these resolutions are for you. Read on to uncover the two New Year resolutions that could make you rich…
The beginning of a New Year provides inspiration to make some resolutions for the year ahead, Alexander Green in Investment U explains…
If y... ››› more
Disclaimer FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found on this website.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this website.