(2) High Dividend Paying Stocks
It is one of the most popular ways to make money from stock markets with no risk. A dividend is a payment that is made by a corporation to its shareholders. It is usually made as a distribution of profits.
Those stocks which are paying higher rate of dividends per share are referred as high dividend paying stocks. These stocks are usually the shares of fundamentally strong companies with strong quarterly earnings.
According to a post published in The Street, Warren Buffet’s top 10 dividend paying stocks for 2016 are General Motors (dividend yield 5%), IBM (dividend yield 3%), Phillips 66 (dividend yield 3.6%), Wells Fargo (dividend yield 3.2%), Coca-Cola (dividend yield 3.1%), Walmart (dividend yield 3.1%), Deere (dividend yield 2.9%), Kraft Heinz (dividend yield 2.7%), US Bancorp (dividend yield 2.5%), & Apple (dividend yield 2.5%).
Similar high dividend paying stocks are present in stock markets of almost every country. You just need to do perform little research before buying them.
Thus, if you are successful in buying them at cheaper stock valuation, you can start earning money from share markets with minimum risk & without efforts.
(3) Arbitrage Trade
It is one of the most common ways to make money from stock markets with no risk. Arbitrage is the simultaneous buying & selling of securities in different markets or in derivatives.
It is a strategy that can help you to take the advantage of differing share prices for the same asset or company. You can generate immediate risk-free profits with this strategy.
For example, if a security is trading in two stock exchanges A & B. If the security is trading at higher price in stock exchange A while at lower price in stock exchange B, you can go for arbitrage trade. You can sell expensive of the two & buying the other. This will generate profit from the difference without any risk.
Similarly, you can perform arbitrage trade between cash & derivatives segment particularly futures. You can either buy in cash & sell in future or sell in cash & buy in future.
You just need to track the right stocks to perform arbitrage trade at the most appropriate time. Thus, you can easily generate profits from share markets with minimum risk & no efforts.
- Confident Share Trader: Shutterstock