Dividends are the payments received by the shareholders of the corporation. Represents the utility of your share subscription declared by the Board of Directors. It can be in the form of cash, property or stock dividends.
Dividend investing is a way of earning passive income for companies that distribute their retained earnings without restriction to their shareholders. There are companies that regularly pay dividends either monthly, quarterly or annually.
Dividends offer long-term stability to your investment. As long as the company earns well, you are assured that the Board will declare dividends except in cases where the profit is reserved for business expansion and debt payment.
The moment you buy stocks that offer dividends, you will have fewer worries about the fluctuation of stocks in the market. Dividends are good sources of earnings despite plummeting or even flat stock prices. This cash flow can be guaranteed by first determining the stocks that generate high dividends.
Dividends also provide stable income. As long as your equity subscription is active and not delinquent, your income is guaranteed. Unlike other investments, when you invest dividends you don’t have to wait a couple of years to get your earnings because the distribution of earnings is done regularly.
Consistent income does not mean that you will receive the same amount of profit throughout your investment. Of course, your dividend will grow like any investment. The increase in dividends depends on how much the company increases its profits.
The investment does not need complicated management. All you have to do is wait until the Board of Directors declares dividends. You don’t need to worry about your wallet or any money management tools.
In your brokerage account, you will see the actual dividends received. Another estate will show you a statement of account duly certified by accountants. However, this is open to various manipulations and fraudulent machinations. In the investment of your dividends there will be no occasion to give you false statements about your income.