These dividends may occur monthly or quarterly so by investing into great dividend paying stocks an investor is able to make a somewhat consistent income off of their investment.. Although it would probably be a very small income, unless they can afford to invest a large sum of money into the stock.

That could be a great way to make a little extra income off of your investment. It also helps investors to make money even if the stock does not go up, but instead continues to trend sideways.

Another investment strategy that can be extrmely profitable is momentum investing. Momentum investors will try to find stocks which are making new highs and get into it hoping to ride the momentum all the way up.

Once the stock starts to turn around however a momentum investor will sell it and hopefully walk away with a large profit and ready to do it all over again. The idea here is to not try to find the bottom of a stock (which is nearly impossible) but to find a stock that is already trending and catch the majority of the move.

By combining the strategy of trend trading and great dividend paying stocks investors can make money in two different ways. They immediately profit from the monthly dividends that the stock is producing. They can also profit from the momentum of the stock.

These two strategies can work pretty well together especially if you find a stock that is going to stay in an uptrend for years on end. As the stock continues to increase in price the dividends also continue to increase, this makes it a great way to have an ever increasing cash flow.