Dividend investing is investing in companies that pay dividends and then reinvesting those dividend payments or using dividend payments as a source of income.
It's one of many possible investing strategies you could use to grow long-term wealth.
One of the key advantages of dividend investing is that it provides a predictable source of income.
While the value of your stocks may fluctuate, the dividends you receive will typically be paid out on a regular schedule.
Another benefit of dividend investing is that it can help to reduce the overall volatility of your portfolio.
By earning income from dividends, you can offset some of the potential losses from your stocks, which can help to smooth out your returns over time.
Dividend investing may have tax implications. Follow does not offer tax advice. If you have any tax related questions, please contact a tax professional.