How to know what stocks to invest in

Julie Brownlee, Fsp Invest, 03 Jun. 2014

Tags: what stocks to invest in, stocks, shares, investing, dividend paying companies, dividends, stock market, why invest,

It can be hard making that first step into the markets. There’s a fear factor involved. You’re scared you’ll lose money. But if you don’t take that risk, you don’t have a chance of making money with that investment. So if you’re ready to take that first step into the market, how do you know what stocks to invest in? Read on to find out…

Why you should invest in the stock market

There are several reasons why you should invest some of your cash into the stock market:
  • You can own a piece of young companies that will go on to do great things, such as the next Google.
  • You can benefit from the knowledge of fund managers with unit trusts.
  • You can benefit from established firms that pay out dividends each year.
And if you plan on staying in the stock markets for the long-term, then you can’t help but make money over time. The market tends to rise over the long-term.

If you’re looking for the best stocks to invest in and you’re a bit hesitant about investing, you should look to the most solid companies on the market.

Focus on solid dividend paying companies

These are companies that increase their dividend payments on a yearly basis. And if you reinvest these dividends, your investment is going to snowball over the long-term. You’ll end up with a lot more shares than you started with.

What’s great about this strategy is that when the market is falling, it works out even better for you. You can buy more shares with your dividend money. And over time, this is very powerful.


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You buy shares with your dividends income. You buy more shares with your dividends income, which generates more dividends. You buy more shares with the dividend income, which generates even more dividends.

If you’re looking for a way to invest in shares that can lower your overall risk, then this is the strategy for you.

So there you have it, how to know what stocks to invest in.

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