Is it profitable to buy stocks in the NYSE and to earn money from the dividend only without trading?

Question

Is it profitable to buy stocks in the NYSE and to earn money from the dividend only without trading?

Answer 1

Yes, it can be.  There are mutual funds designed solely for the purpose of investing in such stocks (known as "equity income funds").

Answer 2

There are certainly stocks on the NYSE that pay excellent dividends.  It can be profitable to buy and hold those stocks just for the dividends especially if the companies have a history of raising the dividends.  I held BAC for years during which time they more than doubled their dividend and stock price too.  I did finally sell it when they announced that they were going to take over Countrywide Finance.  Sort of broke my heart, but there comes a time when investors and companies are no longer compatible.

Answer 3

sure buy and hold

Answer 4

Sure it is !! That is the basis of the " buy and hold" investors' philosophy. Pick good companies, paying YOU to hold their stock... they just keep doing business and you just keep collecting.

Some people ONLY invest that way...and they do well....some people invest a good portion of their money that way and look to other techniques to add more to the kitty...

solid mutual funds...or aggressive mutual funds... stocks, ETFs in " hot " sectors... BUT always having that known divvy amount coming in... quarterly or even monthly.

Any time you get to talking investing, you'll get one or more stories about..." Oh yeah ! I got some AMX when it was 89 cents "  or Merck at 13... or.... on and on... and with the divvys, splits and a little growth, you're looking at a millionaire !!

Answer 5

It certainly can be with enough investment capitol.

Answer 6

Yes, very much so

There are two types of people that buy/sell securities.

One is the Trader who will buy/sell a security and hold it any where from 5 seconds to 3 months.

The other type of buyer/seller in the market is called the Investor.  An investor will buy/sell securities and hold these positions any where from 1 month to 6 months.

There are many investors who will hold securities longer than a 6 month period and many are what they call buy and hold

These Investors buy securities for the long term make their money not only from their investments appreciating in value but also from the dividends that they pay.

Answer 7

Yes.

Answer 8

have you checked their financial statement? and their annual returns?

better to check them all.