We often blog about real estate and there is no doubt real estate investing is our focus at DoorInvestor. Though, as we are approaching Thanksgiving (which is tomorrow), such traditional holiday made us think about the traditional methods of investing – and to us the most traditional way of investing is stocks.

Just like what we blogged about yesterday, titled Cashflow vs. Appreciation, similar concepts apply in stocks investing. There may be quite a few more strategies when it comes to stocks investing, but the 2 that we want to discuss here are: Dividends and Appreciation.

Dividends

This strategy is very similar to the cashflow strategy in real estate investing. What you look for are companies which has a proven record of giving out dividends and giving them out in a consistent basis (e.g. Pay out every quarter). In this strategy, you may not be so concerned about the ups and downs of the underlying stock price, but you are more interested in finding and maintaining the dividend pay out ratio (a.k.a. yield) of the stocks.

If deployed properly, this strategy can be further advanced to be a monthly cashflow play! The way it works in, most companies pay out dividends quarter, but each of them may have different fiscal periods. This means if you can find 12 companies and each of them pay out dividend at a different month (Jan – Dec), you essentially have set up a portfolio that will allow you to receive dividends every single month! Once properly set up, it will be a matter of scaling up your shares holding to increase your monthly cashflow.

Appreciation

Appreciation is a very traditional strategy with stocks investing. You either look for companies that have a stock price that is currently undervalued, or you look for companies that have good future growth potential. You buy their stocks, hold them, and hope that you speculation is correct and the corresponding (positive) adjustment be reflected by the rising of the stock price, hence you make a profit when you sell the shares.

There is nothing wrong with this strategy and again this is a very common and traditional way of stocks investing. You just need to do your own due diligence, and ultimately wish your crystal ball does its job!

Analyzer Tool Set

If this is what you are interested to doing, remember both stocks and real estates are investment “vehicles,” there are no “right” or “wrong” with them, you should definitely equip yourself with the right tool set. We all have limited time in our days and we do not want to glue ourselves in front of the computer all day reading charts. Instead, having something like a stocks analyzer can help streamline your analysis process tremendously. Keep an open mind and give it a try: https://344ecjfdf9u212b64ddpxdrc2y.hop.clickbank.net/