passive income

How does dividend ETFs work?

How does dividend ETFs work? When exchange-traded funds (ETFs) own dividend shares, they collect the entire dividend from all their holdings and pay these dividends to the exchange-traded fund’s unitholders. How do dividend ETFs work in practice? However, these dividends can be distributed in two ways: Either cash is paid to investors or reinvested in the ETF’s underlying investments. The timing of these dividends is on a different schedule than the underlying shares and varies depending on the ETF.

Dividend timing

Just like ordinary shares that pay dividends, an exchange-traded fund has an “ex-dividend” date, a record date and a date when the dividend is paid out. These dates govern, just as in the case of an ordinary share, who receives the dividend and when the ETF pays it.

For example, the ex-dividend day for the popular SPDR S&P 500 ETF (NYSEArca: SPY) is usually the third Friday in the last month of the quarter, ie March, June, September and December. If this is not a trading day, the ex-dividend day falls on the business day preceding this Friday. The record date is always two days later. At the end of each quarter, the SPDR S&P 500 ETF (NYSEArca: SPY) distributes the dividend to its shareholders.

Each ETF sets its own dividend dates. These days are usually stated in the exchange-traded fund’s prospectus. Just as with share prices, it is common for the price of an ETF to rise before the record date and then fall back by an amount corresponding to the dividend. This is because those who own the share before the record date receive the dividend and those who buy after it does not.

Cash dividend

The SPDR S & P 500 ETF pays its dividends in cash. According to the fund’s prospectus, the SPDR S & P 500 ETF places all dividends received by the exchange-traded fund from its underlying shareholdings in a non-interest-bearing account until it is time to make a payment. At the end of the quarter, when dividends are to be paid, the SPDR S & P 500 ETF deducts dividends from the non-interest-bearing account and distributes them proportionally to investors.

Some other ETFs may temporarily reinvest the dividends from the underlying shares in the fund’s holdings until it is time to make a cash dividend. This, of course, creates a small leverage effect in the fund, which can improve its performance in the bull markets somewhat and damage development somewhat when the market falls.

Reinvested dividend

The managers of the exchange-traded funds may also have the opportunity to reinvest their investors’ dividends in the ETF instead of distributing them. The exchange-traded fund always collects the cash dividend for all underlying shares and always distributes the dividend to the ETF owner. The payment to the shareholder can also be achieved through reinvestment in the exchange-traded fund’s underlying index on behalf of the unitholder. In essence, it will look the same: If an ETF owner receives a 2% reinvestment from an ETF, he can turn around and sell those shares if he prefers cash.

Sometimes these reinvestments can be seen as an advantage, as it does not cost the investor any brokerage to buy the new shares by reinvesting the dividend. However, each shareholder’s annual dividend is taxable during the year in which it was received, even if it is received through reinvestment of dividends.

Exchange-traded funds that focus on dividends

Although exchange-traded funds are often known for tracking broad indices, such as the S&P 500 or Russell 2000, there are also many ETFs that focus on dividend-paying stocks. Historically, dividends have accounted for close to 40% of the stock market’s total return and strong dividend history is one of the surest signs of profitability in the company.

Below are five popular dividends ETFs.

SPDR S&P Dividend ETF (SDY)

The SPDR S & P Dividend ETF (NYSEArca: SDY) is the most extreme and exclusive of the dividend ETFs. It tracks the S & P High-yield Dividends Aristocrats Index, which only includes those companies from the S & P Composite 1500 with at least 20 years due to increased dividends. Due to the long history of paying these dividends reliably, these companies are often considered less risky for investors who want current returns.

Vanguard Dividend Appreciation ETF

The Vanguard Dividend Appreciation ETF (NYSEArca: VIG) tracks the NASDAQ US Dividend Achievers Select Index, a market value-weighted grouping of companies that has increased dividends for at least 10 consecutive years. Its assets are invested domestically and the portfolio includes many dividend legends, such as Microsoft Corp. (NASDAQ: MSFT) and Johnson & Johnson (NYSE: JNJ).

iShares Select Dividend ETF

iShares Select Dividend ETF (NYSEArca: DVY) is the largest ETF that tracks a dividend weighted index. Like VIG, this ETF is entirely focused on the United States, but it focuses on smaller companies. Approximately one-third of the 100 shares in DVY’s portfolio belong to tool companies. Other major sectors represented include finance, cyclical companies, non-cyclical companies and industrial companies.

Vanguard High Dividend Yield ETF

The Vanguard High Dividend Yield ETF (NYSEArca: VYM) has a characteristically low cost and is simple, like most other Vanguard deals. It tracks the FTSE High Dividend Yield Index effectively and shows outstanding marketability for all investors’ demographics. A special feature of the weighting method for VYM is its focus on future dividend forecasts. Most high-yield funds select stocks based on previous dividend history. This gives VYM a stronger technical weight than most competitors.

iShares Core High Dividend ETF

BlackRock’s iShares Core High Dividend ETF (NYSEArca: HDV) is younger and uses a smaller portfolio than the company’s other notable high-yield alternative, DVY. This ETF tracks a Morningstar-designed index of 75 US stocks that are screened based on the sustainability and profit potential of the dividend. These are two characteristics of the foundation of Benjamin Graham and Warren Buffett. In fact, Morningstar’s sustainability rating is driven by Buffett’s concept of an ‘economic moat’, around which a company isolates itself from its rivals.

In addition to these five funds, there are dividend-focused ETFs that use different strategies to increase dividend yields. ETFs such as iShares S & P US Preferred Stock Index Fund (NASDAQ: PFF) track a basket of preference shares in US companies. The dividend yield on preference-based ETFs should be significantly higher than the traditional dividend ETFs, as preference shares behave more like bonds than ordinary shares and do not benefit from the valuation of the company’s share price in the same way.

Investments in real estate investments in ETFs such as the Vanguard REIT ETF (NYSEArca: VNQ) track listed real estate investments (REITs). Due to the nature of REITs, the return on dividends tends to be higher than the usual ETFs.

There are also international equity ETFs, such as the Wisdom Tree Emerging Markets Equity Income Fund (NYSEArca: DEM) or the First Trust DJ Global Dividend Index Fund (NYSEArca: FGD) that track companies that pay dividends that are higher than normal dividend payments. companies domiciled outside the United States.


Different ETFs have different strategies for achieving dividend income. Irrespective of the underlying assets of the exchange-traded fund, the dividend from the underlying assets must be transferred to the fund’s unitholders.

Read also:
15 easy way to make money online

make money online

5 ways to make money with TikTok

5 ways to make money with TikTok. Is it possible to make money on TikTok 2021? Is the platform relevant for you who want to sell and get customers digitally? How do I succeed? All that and much more we go through in this guide, which will help you build a brand and make money on TikTok.

One of those who managed to make money on TikTok is Addison Rae Easterling, who last year raised a full 5 million dollars. Just like on Instagram, it is often people rather than brands and companies that are the big stars. But that does not have to stop you from running a small business.

On the one hand, you can create an account with you as a starting point, where you start from your company and your products and visions. Make it personal!

On the one hand, you can make people want to follow you and your lifestyle, and thereby make people like what you like.

Is it possible to make money on TikTok?

Many have lost revenue sources under Corona and are looking for new ways to make money. Social media is a channel many people watch, and many smart (and small) companies have increased revenue by primarily building brands on Instagram, Facebook and YouTube. So where does TikTok fit into this equation?

TikTok is growing the fastest of social media

First, TikTok is the fastest growing social media, and profiles like Addison Rae Easterling have shown that it is possible to make money on TikTok. There are also TikTok calculations that show how much you can potentially earn. The question is rather HOW do you make money on TikTok, and what would the investment cost you?

Here you can watch a YouTube video about 6 smart ways to make money on TikTok:

Before you can make money on TikTok, go through these three steps

Of course, you will not make money on TikTok from day 1, and of course this applies to most bets. Therefore, wait with the call to the marketing manager at Nike and first go through the following three steps to get ready to succeed at TikTok.

Step 1: Build your brand on TikTok

This is not nuclear physics. Be clear about who you are, why you do what you do and who will love your product or service (target group). Once you have answered these questions, create videos according to your answers. Do not try to please everyone. Ask yourself questions like:

  • Should my videos be funny, spicy or serious?
  • How do I want viewers to see me? As an authority or a source of inspiration?
  • How often should I create videos?

Step 2: Create content that people really want to see

You are your content. If you produce bad or irrelevant content, you will fail. TikTok and other social channels are no game, those who succeed spend an enormous amount of time. All content you create needs to feel fresh, new, unique and of course interesting. For many influencers on TikTok, this means posting several posts per day.

What types of posts work on TikTok?

  • Social Media Challenges
  • Videos Based on Trending Hashtags
  • Dance Videos
  • Song Imitations
  • Dialogue Reenactments 
  • Cute Animal Videos
  • Making Art
  • Answer Questions by Posing as Song Cover Photo
  • Satisfying/Calming Videos
  • Fruit Cutting
  • Voiceovers
  • Life in Quarantine
  • Science Experiments
  • Makeover Videos
  • Tutorials
  • Workout Videos
  • Food/Cooking Videos
  • Freeze-Frame Videos
  • Videos of Your Daily Life
  • Live Videos

Step 3: Get followers

Of course, if you want to make money on TikTok, you need followers. In principle, you succeed by performing steps 1 and 2 in an optimal way. Addison Rae Easterling has over 50 million followers. Are you ready to take up the fight?

To really make money on TikTok, you (probably) need to have at least 10,000 followers, but preferably up to a million. The best way to gain followers is to understand what your target market wants to see and upload quality content to them several times a day.

Remember: Who you have in your target audience determines how fast you can make money on TikTok. Some audiences are more interesting than others for advertisers.

5 Ways to Make Money on TikTok

Okay, now you’ve got the steps to gain followers on TikTok. Now it’s time to make money. And as always when we talk about money, we send you our main message. If you succeed in making money, use it to make the world a better place. Deal?

Step 1: Influencer marketing

You’ve heard the term before, and it works the same way across all social platforms. Companies hire influencers to market the company’s products / services / brands in their videos in the hope of generating sales.

And if you’re wondering what videos on TikTok might look like, here’s a YouTube clip showing what is said to be Addison Rae Easterling’s most popular TikTok videos.

Step 2: Sponsored posts

This can work in two different ways.

Either you can view sponsored posts on your account, or…

… So you can (if you are an influencer) create content for a company account. In practice, this means that you “bring your followers” to the company’s account.

Step 3: Create your own brands and promote the ones you have

For most people who want to succeed on social media, and perhaps especially for those who want to make money on TikTok, this is the most relevant way. Because let’s be honest, there are few who succeed in gaining millions of followers. But if you have your own brand, you can reach out to a niche group of followers with it. Alternatively, you can get a certain type of follower first and then create the brands and products they want.

Remember! If you want to reach people over the age of 50, you will have a tough journey on TikTok (at least right now), First check if your target group is on TikTok, or at least is on their way there!

Step 4: Use your brand to build another career

Just like step 3, this is a perfectly reasonable way to go even if you do not have millions of followers. Use your brand (which you created through TikTok) to start another career, perhaps as a lecturer or as a web course producer.

Many media channels and companies are prepared to invest heavily in reaching young target groups. If you have TikTok followers, you can take them to other channels where you “can more easily get revenue.

Step 5: Become a TikTok Consultant – The Easiest Way to Make Money on TikTok

And the easiest way of them all to make money on TikTok – become a TikTok consultant.

“Everyone” wants to be seen on TikTok these days – almost no one knows how to do it. Create really deep knowledge and package it in a way that makes you an expert. Try to get the media to write about you and talk about TikTok in different media contexts.

Once you become an “expert”, companies will want to consult you to build their TikTok strategy. You can also for lecture opportunities and quickly appear in the media. We promise you – this is by far the easiest way to make money on TikTok!

And you – think before you make your bet on TikTok. The debate about censorship, integrity, and safety for children is there. Bring the greatest ethical thinking with you before you start.

If you want to find other ways to make money online check out our guide here: 15 ways to make money online in 2021

make money online

15 easy way to make money online

15 easy way to make money online 2021

The world’s digital advancement has made it easier than ever to make money from home. Maybe you want to work extra during your studies, or why not invest in a digital full-time career online? No matter who you are and what your goal is, we are convinced that you can find something that works for you.

Many companies start on a small scale, and often start earning their first money from home. You may not have developed that perfect business idea that takes over the world yet, but still want to start your own business? Then this article is for you.

Start by asking yourself the question: What are you good at? What do you think is fun? If you find an activity with the two common denominators, the probability is high that you can also make a living! You might like to write texts, follow the stock market, test products or something else.

If you need a little help along the way, we share here our 15 tips on things that allow you to start making money online from the quiet corner of your home.

1. Offer language lesson

There are plenty of people out there who need to learn a new language! It can be a school student, a new employee who has moved to a new country, or a holidaymaker who wants to sharpen their language skills before the trip. Get a Zoom, Skype, or Google Meet account, offer your services – and you’re off!

2. Affiliate – send customers to the right store

Affiliate marketing is a results-based marketing method. You can e.g. have a website that tests and reviews speakers, and under each review there is an affiliate link that sends the reader on to the product page. If the reader chooses to make a purchase from the advertiser, you as a distributor will receive a piece of the pie. If the website gets proper traffic, you can make big money on referrals, without having to do much yourself. A good passive income!

3. Collaborate with distance warehouses aka Dropshipping

Dropshipping is a concept that means that you sell physical products without having your own warehouse. You create an online store with all the products you want to sell at any price and when someone places an order, it is forwarded to your partner who handles the logistics. The money ends up in your account, your partner receives part of the revenue and the customer receives the package delivered to them from a remote warehouse somewhere in the world and usually does not notice that a third party is even involved.

4. Make niche videos

Every day, over a billion hours of video are displayed on YouTube. If you need help assembling an IKEA piece of furniture, need to learn how to program or want to hear a piece of music, chances are you will find the answer in a YouTube search. If you create content yourself, you have the opportunity to monetize the ads that appear next to your video. However, the advertising revenue is not very large, but if you get enough impressions, companies may be interested in sponsoring the video. Niche videos always work best! What can you teach that can be of use to someone else?

5. Write texts

Content has become an increasingly important tool for companies to be relevant to their customers, appear in search results and reach their target audience. Not all companies can afford to pay professional journalists to write blog posts for their website. If you have the talent for writing, you can offer your services at a competitive price. If you are an expert in a particular field, chances are you can increase your price further.

7. Translate texts

The world is becoming increasingly interconnected. National borders are beginning to blur and people are both traveling and moving like never before. An increasing need to be able to reach out with their message in more languages than the national language has arisen. If you have several mother tongues or just a talent for languages, you can therefore be very useful in the work of translating texts, such as simpler information materials, articles or books, for companies and organizations. However, if you want to work with translating educational materials or government documents, you must be an authorized translator.

8. Take care of social media

It happens far too often that you find a store or a restaurant’s Facebook page or Instagram profile, which on closer inspection has not been updated for several years or months. If you yourself are a diligent user of social media, you probably know how to handle it much better than those behind the company! Go to small businesses in your area and ask to take care of their social media – to increase their brand awareness and find new customers.

9. Go on a virtual flea market round

For example, visit Ebay or Facebook Marketplace and look for gadgets with potential! Maybe you have an eye for collectibles like old pokémon cards, comic books or retro toys? Buy them and then resell them to other people. This proposal originally came from American entrepreneur Gary Vaynerchuk. He has founded a media company with a turnover of billions and is thus a multimillionaire, but on the weekends he goes around to flea markets and looks for things to transform from “trash” to “cash”.

10. Become a Virtual Assistant

There are plenty of companies that do not need full-time assistants – but still, there is a need to get a helping hand at regular intervals. You agree with your customer on a certain number of hours per month and what you will help with. The tasks vary but can involve posting receipts, booking dinners, planning the calendar, sorting incoming e-mails, doing research on a specific topic, ordering flower delivery to business partners, or the like. You often do not need to have any prior knowledge in the industry.

You can find work on websites like:
Virtual Assistant Jobs 

11. Get paid for your opinions

Many larger companies conduct market research at regular intervals in order to keep up with market fluctuations. It can be about finding out if existing customers are satisfied with their monthly cost or researching the interest in a completely new product. The survey companies are constantly looking for respondents. The surveys are often conducted at home through a web form or a telephone interview. You will be paid per survey and if you provide a rewarding answer, it is very likely that you will be asked more times.

12. Take an online course

Maybe you are cruel at baking muffins, playing the guitar or taking nice Instagram photos? Then you should consider sharing your knowledge with other people online and earning a penny at the same time! There are many course portals that allow you to set up your own online course, with various chapters containing texts, pictures, movies, and the like. It may feel overwhelming at first, but once the course is up and you have your first participants in, you can sit back and enjoy a passive income!

13. Help with homework

In recent years, more and more opportunities to get homework help all over the world. Those who do the work are often students or teachers who spend their free time helping children and young people reach their goals. There are both commercial companies and non-profit organizations that offer homework help. It can be done at the student’s home, in the school premises or of course – via the internet. If you are interested in language, mathematics, science or any other school subject, you can combine benefit with fun to help students develop their knowledge! There are many parents, who are either too stressed or who do not have the knowledge themselves, who may consider investing in their children’s future.

You can find online tutoring jobs on a website like these:
Tutor Me
Chegg Tutors

14. Have a technology school for the elderly

Are you yourself a diligent user of computers, mobiles and tablets? Then you most likely have greater digital knowledge than the elderly in your vicinity. You may not have to charge to help your neighbor dial a phone number. If, on the other hand, you are going to spend an afternoon teaching someone you do not know very well how a tablet works, then it can suddenly become a business opportunity. Today, more than 1 million Swedes feel that they live in a digital exclusion and some of them are certainly prepared to make an investment in their digital future. Not everyone has children or grandchildren to ask. Psst! Just do not forget that your target audience is probably not reached through online ads. Post notes with your phone number at your local grocery store instead. It does not have to be harder than that!

15. Invest in stocks and mutual funds

Do you know the world around you and a sense of numbers? Then maybe you should take a closer look at investing in stocks and mutual funds! Today, there are plenty of tools to help you get started quickly and easily at a low cost.

Read our guide about how to start day trading here:
How to start with day trading in 2021 – 10 things all beginner traders need to learn

Freelance services, networks and platforms

By now you may have an idea of ​​what you would like to try. In some cases, you may already have contacts to turn to – but how do you find your customers outside your own network and outside of platforms like Facebook, Instagram and LinkedIn? Well, there are actually a lot of services just for that.

Upwork is one of the world’s leading intermediaries of teleworking. According to their own website, over 5 million companies have used the service and among the customers are Microsoft, Airbnb and GE to name a few. Upwork is looking for freelancers in everything from programming and administration to writing and sales.

Fiverr was founded as early as 2010 and has become one of the world’s leading platforms for creative services. Creators from all over the world gather here to offer their services in design, video editing,. The name originally comes from the website offering services from $ 5. You decide your price and you keep the whole cake. Fiverr instead charges a service fee for the buyer.

Teachable allows you to create and sell online courses! You create a free account and build your own course by adding text, image, movie, audio, presentations and other content. You choose what it will cost to complete the course and at a small cost, Teachable takes care of both payment systems and technology solutions. It will hardly be smoother than that!

Etsy is a well-known player in the maker movement! Here, independent sellers offer their unique products to customers all over the world. Whether you make greeting cards, paintings, clothes, embroidery, bracelets or books, here is a place for you!

How to stay focused away from home

It can be difficult to concentrate when working from home. The mountain of dishes in the zink is growing, the hall should be cleaned, the kids’ clothes need to be washed. If you want to make money from home in a sustainable way, you need to find a way to manage everything around you. Here are some simple but powerful tips:

“Go to work”

Take a walk at the beginning and end of each working day. Let a short outdoor stay be a clear demarcation between work and everyday life! A 5 minute walk can be enough to gather energy and let go of everything else for a while.

Get a workplace at home

Have a dedicated workplace. The sofa in all its glory, but it can be smart to think ergonomically to keep up in the long run! Feel free to get a desk if you do not already have one – otherwise the dining table can work at least as well.

Disconnect from the outside world

Feel free to log out of social media and turn off the notices on your phone to avoid unnecessary distractions. It works wonders for concentration!

dividend stocks

Best german dividend stocks 2021

Best german dividend stocks 2021. Why would I want to buy german dividend shares you might ask yourself?

Buying dividend shares in Germany is all about pure risk diversification. Although developments on the world’s stock markets are often interconnected, things can happen that affect individual markets more than others. Would your country be hit by a financial crisis, loan bubble, or any other type of event at some point in the future, it could hit savings hard.

An extra added bonus is also by owning shares in other currencies, you are also not as exposed to fluctuations in your own currency if you in this scenario are not living in the eurozone.

It is a truly good habit to diversify the equity portfolio towards other markets. Many people buy preferably American dividend shares.
I would say that it can be at least as interesting to supplement with some well-chosen German dividend shares.

Which German dividend shares are worth buying?

What is worth buying among the large range of dividend shares in Germany depends on your dividend strategy.

My best suggestion is that you buy shares with a stable dividend history (see below) but with a dividend share that is not too high, with a maximum of 80 percent can be a good benchmark.
So they still invest for the future and are not just focusing on making the shareholders happy today.

The following list below is german stocks that are paying yearly dividends payout:

  • CEWE
  • Fielmann AG
  • Fresenius
  • Fresenius Medical Care
  • Fuchs Petrolub
  • Grenke Leasing
  • Rational
  • Stratec Biomedical
  • Umweltbank
  • VIB Vermögen AG
  • Adesso
  • Allianz
  • Axel Springer
  • Bayer
  • Baywa
  • Bechtle
  • Beiersdorf
  • Cancom
  • Compugroup Medical
  • CTS Eventim
  • DIC Asset
  • Deutsche Post
  • Euroshop
  • Edding Vz.
  • Evonik
  • Fraport
  • Freenet
  • Frosta
  • GFT Technologies
  • Hamborner Reit
  • HeidelbergCement
  • Henkel
  • Hornbach Holding
  • Isra Vision
  • Lechwerke
  • MBB Industries
  • Merck KgaA
  • MTU Aero Engines
  • Munich Re
  • MVV
  • Nemetschek
  • OHB
  • Paul Hartmann
  • SAP
  • Sartorius Vz.
  • Siemens
  • Software AG
  • Steico
  • Sto SE
  • Symrise
  • Syzygy
  • USU Software
  • VTG

day trading

How to start with day trading in 2021

How to start with day trading in 2021 – 10 things all beginner traders need to learn

  1. In day trading, the choice of broker is important – low fee brokerage is of extreme importance!
  2. Never trade so that you get big losses. A rule of thumb is to never risk more than 1-2% of your account on each trade.
    Ex. If you have euro 10,000 in the account, never lose more than euro 100-200 per trade.
  3. Learn from your mistakes. Let the stock market be your mentor and school. If you make a mistake, write them down and learn from them. If you follow this advice, you will minimize your mistakes and your strategy can make money for you.
  4. Be careful when buying advice, teaching and trading signals on the internet. Most people who sell something on the internet in day trading sell something that does not work! Always ask for results on what they want to sell or teach about. Always ask this before you buy something. If they have nothing to show, you can in 99% of cases be sure that what they sell does not work.
  5. Always get up if you fall. daytrader never give up! This is perhaps the most important trait if you want to become a trader.
  6. It is important that you base your trading decisions on facts and not on your emotions or your ego. Follow your plan and strategy.
  7. Always decide when or how to sell before you take the trade. This means that you have already decided on a stop loss, profit target, trailing stop, etc. before you take the trade. Of course, these should be based on your trading system. A common mistake among beginners is not to have decided where to have their exits before taking their trade.
  8. Have a trading journal where you write down your trades and follow up on everything the trading journal does. Not only when you bought and sold but also things that you learned. This applies to both mistakes and things that you do well. Return to your journal when you have problems or need help. A trading journal is invaluable.
  9. Read the best day trading books that have ever been written. You can never read too much as a daytrader. Keep in mind that a single tip from a book can make a huge difference in your results on the bottom line in day trading. Ask someone you trust or who you know has succeeded in trading for book advice. But you can start with the all-time classic The Intelligent Investor by Benjamin Graham.
  10. The success you will have on the stock market is mainly dependent on how much work you will put in. The famous 10,000-hour rule can be said here. Do not forget that you compete on the stock exchange with large companies that have very competent staff and resources. What do you know that you do not think they know? Work harder than everyone else!

Read also:
How does dividend ETFs work?