Yahoo Finance Double Your Money in 2020 With 2 Simple Strategies
Making more money or multiplying your cash could be your aim in 2020. There are many ways to help you improve your financial situation, and they’re not the get-rich-quick schemes.
Two simple strategies will let you discover the power of growing money and double its value at the same time. Besides, who would pass up on extra income opportunities?
Stock investing
Stock investing is one of the best ways to produce money from money. You can create a passive-income stream from the stock market. Even with little capital, investing in dividend stocks like Bridgemarq (TSX:BRE) can make a big difference. You have to start somewhere to reach your financial objective.
Bridgemarq is a small-cap stock that’s been in existence since 2003. This $141.7 million company is a leading provider of services to residential real estate brokers. It has a network of 18,000-strong realtors operating in Canada.
The attractive feature of this real estate stock is its 9% dividend. Seed capital of $5,000 will already produce $450 in annual income. As you increase your exposure, the higher your earnings will be. Any amount of investment you’re putting in will double in eight years.
Bridgemarq derives recurring revenue from fixed franchise fees that are protected through long-term franchising agreements. With this revenue structure, Bridgemarq generates stable and long-term cash flows, which allow for the payment of growing dividends.
Dividend reinvesting
Dividend reinvesting complements stock investing. You can choose to reinvest dividends to purchase more stocks. In case the company consistently raises its dividends, you will realize the power of dividend-growth compounding.
Pizza Pizza (TSX:PZA) is a $231.91 royalty company that pays a 9% dividend like Bridgemarq. Likewise, over the last decade, the dividend has been stable. It indicates that the business has consistent earnings power.
If you reinvest the dividends from Pizza, you can add small amounts to your exposure. Dividend reinvesting is the most efficient way to grow your money, as the number of shares and dividends grow in tandem.
The 52-year-old trusted brand and leader in the food service industry has 750 restaurants under its wings. But since consolidation is happening in the retail food space, Pizza Pizza is feeling the impact. It would need a positive catalyst to reclaim its dominant market position. Still, pizza never goes out of style, and people will crave it.
Time is of the essence if you are saving for the future. The earlier you can start the process, the better. Beginning next year, the best gifts you can give yourself are noteworthy dividend stocks like Bridgemarq and Pizza Pizza.
You can’t delay saving and start investing at a later age. Otherwise, if you start at age 45, you have to set aside three times as much as you would if you had started at 20-something.
Prosperous new year
There are countless and less-risky ways to double your money, but it will take longer to achieve your goal — if you do at all. The two simple strategies are the best legitimate and profitable options you can find to make 2020 a prosperous year.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of PIZZA PIZZA ROYALTY CORP.
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