These payouts have risen by 60% in the last 5 years

“Global dividend income has now risen by 60% in the five years since 2009, far outstripping inflation and savers’ interest rates in the UK, and also the growth of economies around the world.

“That underlines the vital importance to investors of dividend income, especially when share prices have stagnated …” BBC Business News

There’s a lot of talk about dividends right now, because dividend season is gearing up, and those who know how to get these payouts are rubbing their hands in glee.

Dividends are sometimes described as “money for nothing”.

What’s not to like about that?

Yet most investors feel shut out of this profit stream because they don’t have the money to buy shares, or the knowledge to pick those shares.

But, as I’d like to show you here, it doesn’t have to be this way.

First, let’s take a look at what classic dividend investing is, and why companies make these payouts.

What are dividends?

Dividends are regular sums of money paid out by companies from their profits to their shareholders.

Paying regular dividend income is traditionally seen as a measure of the long-term strength and success of a company. Historically, dividend-paying companies have outperformed other asset classes over the long term. This makes them one of the safest investments out there.

They often attract older investors, who like the security of these investments combined with the regular income.

The idea that you can get paid for holding a stock in your portfolio, while you wait for that share price to rise, is a win-win for investors.

But there’s a problem with dividend investing – payments are not evenly spread among companies, and despite what some claim – you can’t predict what will be delivered.

Add to this the burden of tying up your money in share ownership.

Many investors can’t afford to do this, and, even if they could, it’s not something they’re keen to do with the stockmarkets trading at the very top of their ranges as they are right now.

The result is that investors fall into one of three camps …

Some investors will go chasing after the dividend payouts based on who’s paid out big ‘last time’ …

… Some investors just sit tight with a firm that they feel comfortable with hoping for the best …

… But the majority of investors feel locked out of this income stream altogether, because they don’t have the money to buy shares, and they don’t have the know-how to pick them.

But, as dividend season hots up, Trader’s Bulletin will be giving you the inside track into how you can take advantage of these payouts (without having to buy up expensive stocks, or pour through the financial news).

And dividend payouts have another thing going for them right now – the strong dollar means that FTSE firms with dollar-based earnings will translate back into pounds at an even better level.

Please watch for lots more information on this subject in the coming weeks …

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Dividend capture – old-fashioned investing gets a face lift Unraveling dividend yields