Basics of Dividends
Basics of Dividends Dividend investing is a popular and profitable strategy that involves buying and holding stocks that pay regular dividends to shareholders. Dividends are payments that companies make to distribute a portion of their earnings to their investors. By investing in dividend-paying stocks, you can create a passive income stream that grows over time and benefits from the power of compounding. But how do you choose the best dividend stocks and what are the secrets of successful dividend investing? In this blog post, we will explore some of the key factors and tips that can help you build a solid dividend portfolio that generates consistent and growing income. What is dividend yield and why does it matter? One of the most important metrics to look at when evaluating dividend stocks is the dividend yield. The dividend yield is the annual dividend per share divided by the current share price, expressed as a percentage. For example, if a stock pays $2 per share in dividen...
