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  • How to invest in dividend paying stocks
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    How to Buy Dividend Stocks

    Buying dividend-paying stocks or dividend stock funds is a great way to obtain passive income from a stock portfolio. A portfolio consisting of dividend-paying stocks can compound significantly over many years.

    This article will outline how to add dividend-paying stocks to your portfolio and further outline the benefits and risks of dividend-paying stocks and funds. 

    How to Buy Dividend Stocks

    Buying a stock that pays a dividend is as simple as buying any other stock.

    The investor opens an account at a brokerage firm, researches the dividend-paying stock or fund they want to purchase, then purchases the stock or fund through the broker’s order entry system.

    Steps Required to Buy Dividend Stocks 

    Buying dividend stocks is a relatively straightforward process.

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    The investor opens and funds an account, researches the stock or fund they want to purchase, makes the purchase, and then monitors their position.

    Here’s how it works.

    Step 1: Open a brokerage account. Opening an account is a very easy process and can be done online.

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