How do you make money from stocks?

Question

Do you get money from the stock each month or do you have to cash it in?

Answer 1

There are two ways. From any dividends they may pay, most of which are tax preferred by the way. From any price appreciation that the shares may accumulate, which requires you to sell the stocks to realize or at least part of the stocks. Some mutual funds do pay monthly dividends. Most stocks pay dividends quarterly. Those that pay dividends. Some stocks pay a rather generous dividend. BAC, BBT, USB for example. All three over 4% and they raise the dividend annually, or at least they have in the past. Some pay even greater dividends.

But price appreciation is what most investors are after, not the dividends. If you but a stock in a sound growing company, investing in it might over 10 years return 5 to 10 times the initial investment. At least that is what investors hope.

Answer 2

IT depends. Some companies will issue dividends to thier stockholders. This is essentially a cash payment that you can take home or re-invest if you wish. Some companies pay more than others, some don't pay dividends at all. It's at the discretion of the company.

The typical way you get money from a stock is to sell it and take the cash.

Answer 3

Some stocks pay a dividend (usually quarterly). The dividend is a payment to the holder of the stock. Usually people make money by buying stocks at a set price and holding until they rise in value and selling at the higher price.

Answer 4

1. Buy when the price is low.
2. Be VERY VERY patient.
3. Sell when the price is high.