Pier investments have a target 6% annual yield. Our objective is to produce income for our clients by managing investments in strong, reliable companies that pay dividends.
A dividend is the portion of profits a company distributes to shareholders. The companies pay you dividends on a regular basis (monthly and quarterly) because you own a share of the company.
This is what we consider to be true passive income—your money works for you, giving you a return on your investment.
The advantage for dividend income is that you don’t have to hope the stock price goes up and wait until you sell the stock before you start to realize the investment income. You receive dividend payments throughout the time you own the stocks in your portfolio. You can benefit from the stock price going up, and in the meantime you have a steady stream of income.
Dividends are cash payments to you, and the payments are made directly into your account. You can either reinvest them or withdraw them for income. This can be used to supplement your income or support your retirement without withdrawing your principal.
With a target of 6%, a hypothetical investment of $100,000 would yield $500 average income per month. As time passes, the dividends should grow.
At Pier we look for companies that have a history of consistently paying and increasing their dividends over time, which is an indicator of financial stability and growth. Companies that pay dividends tend to be reliable investments because the dividend provides real value to the stockholder, and the stock price doesn’t fluctuate as widely as it could for non-dividend paying companies.
Keep reading about investment income…Complete Access to Your Money