It is no more secrete that investing in dividend stocks is the best way to earn extra income every month. Long term investment in such stocks can be greatly advantageous especially to the individuals who are planning for their retirement. There are many important things you need to understand like earning money from these stocks depends completely on the type of stocks that you have purchased. All of them have dividends but there is a difference is the frequency of the dividend payment.

Some stocks pay the dividends on a quarterly basis and some of them pay dividend yearly basis. In fact, there are number of stocks that pay monthly dividends and obviously they are best among all other types of stocks available in the market. With the monthly dividends it is easy for individuals to plan retirement and other needs that are based on finance. Before you can venture into the business of purchasing of dividend stocks, an investor need to understand what stocks are and what are their work procedure.

Dividends are actually paid by the companies after the board of directors has authorized the payments. There are a few crucial dates when it comes to dividends. There is the announcement date which is the day of the month that the Board of Directors declare their purpose of paying dividends. After the declaration the companies then declares a financial obligation on their statements. It is on this same day of the month that the Board of Directors declare the date of record and dividend payment.

The record date is essentially the day of the month that the companies set to find out who their shareholders are. If you also want to invest in such stocks and want to gather comprehensive details about High dividend yield stocks, then we can aid you in this matter. Here at The Dividend Trail, we have been providing expert suggestions to people who want to invest their hard earned money in stock market for many years. In fact, we also provide free training on stock market to people who want to make career as a financial advisor. To get complete details, simply visit our website today!