šŖ I thought that to make money with an investment I had to buy something cheap and wait for its price to go up.
But by learning about the markets, I discovered another way: dividends.
So, what are they?
Imagine that you buy a portion of a company or an ETF that distributes part of its profits to investors.
For example, $VOO.ETF , an ETF that tracks the S&P 500, distributes dividends.
And itās not the only asset that can distribute them. On Binance there are also bStocks of assets like $NVDAB , $AAPLB Meta and Broadcom, among others, subject to availability depending on the region.
Whatās interesting is that in bStocks, the net dividend is automatically reinvested into the same asset.
So something like this can happen:
šµ I have VOO
š¢ Companies generate profits
š° A dividend is distributed
š The dividend is reinvested
šŖ I have a bit more VOO
And this is where I start to understand the idea of making my money work for me.
That said: a dividend doesnāt mean free money. The asset price can go up or down, and dividends can change.
For me, whatās interesting isnāt only looking at how much an asset can rise, but understanding what mechanisms exist to generate returns while I hold it.
Iām learning little by little. And this is just the beginning.
Educational content based on my personal experience. Not financial advice.
DYOR. RESEARCH IT YOURSELF.
#EducaciĆ³nFinanciera #bitcoin #ETFs
But by learning about the markets, I discovered another way: dividends.
So, what are they?
Imagine that you buy a portion of a company or an ETF that distributes part of its profits to investors.
For example, $VOO.ETF , an ETF that tracks the S&P 500, distributes dividends.
And itās not the only asset that can distribute them. On Binance there are also bStocks of assets like $NVDAB , $AAPLB Meta and Broadcom, among others, subject to availability depending on the region.
Whatās interesting is that in bStocks, the net dividend is automatically reinvested into the same asset.
So something like this can happen:
šµ I have VOO
š¢ Companies generate profits
š° A dividend is distributed
š The dividend is reinvested
šŖ I have a bit more VOO
And this is where I start to understand the idea of making my money work for me.
That said: a dividend doesnāt mean free money. The asset price can go up or down, and dividends can change.
For me, whatās interesting isnāt only looking at how much an asset can rise, but understanding what mechanisms exist to generate returns while I hold it.
Iām learning little by little. And this is just the beginning.
Educational content based on my personal experience. Not financial advice.
DYOR. RESEARCH IT YOURSELF.
#EducaciĆ³nFinanciera #bitcoin #ETFs
