Ah Amazon …
Probably the most famous and popular company in the world.
It has changed the way we shop and single-handedly created the e-commerce sector.
Try to think of someone you know never used Amazon…
Pretty difficult, isn’t it?
That shows you what a giant Amazon is.
The reason why you are here is as follows You wonder if Amazon pays a dividend.
I mean, wouldn’t it be nice if you could get a substantial dividend paycheck in addition to? hopeful – massive capital growth?
That is, how much the stock price – and your investment – would grow.
A nice Amazon dividend that will be transferred directly to your bank account.
No dividends yet
Well, I have good news and bad news.
Let’s start with the bad news – It is always better to quickly peel the patch.
Amazon Not Pay a dividend now.
Sorry to bring sad news … But at the moment, the only way to make money buying Amazon stocks is to sell those stocks at a profit.
This is not ideal, especially if you are looking for income that is getting in your way!
So let’s look at how likely it is that Amazon will one day pay a dividend.
Why tech startups (usually) don’t pay dividends
As you can see, companies follow a cycle.
Your primary goal is to grow quickly. As quickly as possible.
In this growth phase, it is important Invest every dollar back in business.
This helps to buy new equipment, hire new employees, open new facilities … you get the picture 😉
Amazon is here right now. Reinvest everything it does.
Put fuel in the fire.
It will reach soon Ready for the market – All successful companies finally reach this point.
This is the point at which further investments lead to falling returns.
After that company do not need every single dollar to get back into business.
This is where a company will start to think …
“Hey, we’re making a lot of money here … why don’t we pay our shareholders something to make them happy?”
This is the point Amazon must get to before it pays off!
It will come sometime – The question is when.
The Apple example
Something similar happened with Apple.
You’ve been in growth mode for years. Decades!
They released many products that changed the competitive environment in the electronics market – You might even read this through one of these products!
However, as is usual with successful companies, they reached the point where they decided to pay dividends.
That was in 2012.
At that point, Apple started its dividend growth streak.
Since then, it has paid a dividend every quarter.
But even better than that …
It has increased the amount it pays each year.
In other words, Apple is a dividend-growing stock.
What is a dividend growth stock?
It has been shown that stocks that not only pay a dividend but also increase it continuously beat other types of stocks in the long term.
Check this out:
It’s like getting a raise at work every year – without having to work harder … or at all!
The reason why these types of companies do so well is that only the best can do it.
Only the best of the best – the crème de la crème – of companies can further increase their dividends each year.
Through thick and thin. Even if there is a recession or they make less money in bad times.
In a way It’s like a great filter.
Think about it…
If a company is able to increase its dividend for more than 10 years in a row, you can be sure that you have a high-quality stock in your hands!
I bet one day we’ll be able to enjoy ours Amazon dividend, but it still has something to do.
But while you’re still here, I want to give you an example of what it’s like to invest in dividend growth stocks.
Johnson & Johnson has increased its dividend every year since 1963.
In 1972 (this is as far back as on their website) you received $ 0.008332 per share per year … This was in 1972.
Today it pays $ 3.8 per share! In addition, there have been several stock splits since then, making growth even bigger than expected.
To put things in perspective …
If you bought $ 10,000 worth of JNJ shares in 1972, you would have 102 shares and a tiny dividend. Incidentally, you can check this yourself by going the official Investor Relations website.
That would have been spectacular today $ 714,705.94.
(Note: this does not include reinvested dividends, so the result could be much higher!)
You would also earn $ 18,623 in dividends this year.
And it would grow even more next year!
Because that’s exactly what dividend growth stocks do.
Amazon does not yet pay a dividend.
It will probably take a few more years before that happens.
So while you are waiting for Amazon to pay a dividend, you can build a portfolio of dividend growth stocks.
Shares that make your money grow AND pay dividends quarterly.
If you are interested, I have created a quick guide that you can download for free here:
Would you like to know how to start dividend growth investing? Then this PDF guide is the perfect starting point.
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