|How to start a dividend portfolio with just 2000$?|
1- Open a brokerage account
In the firs place you just have to open a brokerage account with your 2000$ (you can invest another value, even lower, of course that the more you invest, the more you will have in return, still, you should just invest money that you don't need, if you are going to pull out early you may lose money), this account will be used for your purchases of stocks and it is crucial.
2- Picking stocks
You should pick stocks with high dividend revenue and with a solid growth in dividend value so that as time goes by you receive more and more in dividends and can always expect a high value in dividends.
You should always select companies that are well implemented in a market, not recently developed companies with high growth level, just make the safe choice, we are not looking for growth right now. Buy stocks from one or two companies max, more than that and you results will not be good.
At some point you will start to receive money from dividends from the stocks that you bought, with this money you will reinvest in the stocks that you have purchased so that the money that you receive from dividends will increase year after year.
4- Buy new stocks
At every 2000$ that you make you should buy new stocks, in this way you still receive money from dividends and even if one of the companies that you bought go bankrupt you still receive your money and minimize your losses, in this way you guarantee some safety to your investment and you can never be too careful.
5- Growth and personal income
Until now we only talked about dividends as a way to reinvest but if you always reinvest you will never have money for you, so you should have some income from this.
What you have to do is compromise, you can always reinvest for 10 years and after 10 years you take half the dividends for yourself and half to reinvest, this way you can always count on some money from your investment and still have a growing amount of money invested and therefore more money from dividends
This may seem like a long process but it can give you some financial stability, if you are ever about to lose your job you can pull some of the money from the dividends and have a break and it will give you a better future, because if you start at 20 for example, by your 30th birthday you will already be making enough money from you dividends to have vacations with your family, travel, this can make a huge difference in your life, i deeply advise you to do it, but it's up to you, there are always risks but in this way you will be minimizing them.