Alright, so now that I've laid out the framework for the rest of the course, let's get into the meat of the actual course which is going to discuss how you can actually get paid on a monthly basis through investing in the stock market. Okay, as I mentioned before, I'm known for being a day trader, I'm nationally recognized as being someone who used to be very involved in the stock market as a high frequency trader, but I also know and invest in dividend stocks, as you can see here. I want to teach you exactly how to be able to understand how you can get these stocks to pay you on a consistent basis. Okay. So, let me break down the fundamentals. Once you purchase certain shares of a stock.
Okay, you are then an unofficial owner of the stock, okay, you're basically an owner of the stock but you have to recognize that your ownership percentage is extremely low. Okay. There might be a public company that issues 2 million In order to Bill, you know, 200 million shares, and you have like 20 of them, okay? So you do the math, and that's how much percentage ownership that you have. However, when you choose to invest in stocks, like you see here that have actual dividend yields, okay? That means that a certain percentage of every quarter or every month based upon the stock that you invest in, you're going to get a certain payback.
All right, and that's what I'm here to discuss. Because if you do it right, and if you invest in the right stocks at the right time, and it's not even that hard, if you just put your money in the right places and into the stock market into these dividend stocks, you'll be able to have a consistent passive income coming into month after month on a very frequent basis with a rate of return that is extremely respectable and that will allow you to retire without issues. Because you won't have to work because this money will be coming in no matter what. Alright, so that's what I'm here to teach you. So first, we have to talk about what dividend yields are. Okay?
So what I want to do is right now I'm on dividend Comm. Alright, very basic site, you know, but allows you to see is it sorts out all the dividend paying stocks. So, before we get into anything, let me just talk about that. Not every single stock in the world that's on a public exchange, like the NASDAQ, New York Stock Exchange, or any stock market in the world, to be honest, not all of the stocks pay a dividend. There's only certain stocks, you'll see that end up paying a dividend and the reason for that is because at these board meetings that they have, the company has to decide what to do with their profits. Okay.
So you assume that you have a company, a public company that runs and then at the at a year the meeting or an annual meeting or whatever, whenever they have their board of directors meeting They have to discuss whether or not they want to redistribute the earnings and profits that they've made that year to their shareholders, which will be you if you own a stock or if you own a share of a stock, or do they want to reinvest it back into the business? Okay. So there's a lot of companies that don't pay dividends, you know, but there's also very popular companies that do pay dividends, for example, at&t, they're known to pay a 5% dividend. Okay, so what does that mean to you? All right. And if you're, I want to go I want to do the whole basics of it.
So I'm going to talk about exactly what that means for you. All right. So if you have as we mentioned, a TMT with the 5% dividend yield. What in the world does that mean? And let me break it down to very simple. If you have $1 and you invest that into a stock, okay, say the price of that stock is $1 and they give you a 5% yield.
That means that every quarter or every month or every year, basically On whenever they give out their dividends, that is the amount that you will get paid on your investment. So if you put in going back to our previous example, if you put in a single dollar and you received a 5% return, that means you will get five cents back for every single share that you have, or in this scenario for the one share that you own, because they give you a 5% yield. So every quarter or every on annual basis, right, this chart, if you look right here at all this situation. This gives you the percentage and the math based on an annual rate. Alright, so let's take this into practicality. Okay.
Let's talk about how to assess dividend yields. All right. So I'm going to show you that in the next video. See you guys then