Dividends are the payments received by the shareholders of the corporation. Represents the profit from your share subscription as declared by the Board of Directors. It can be in the form of dividends in cash, property or shares.
Dividend investing is a way to earn passive income from companies that distribute their unrestricted retained earnings to their shareholders. There are companies that pay dividends regularly, either monthly, quarterly or annually.
Dividends offer long-term stability to your investment. As long as the business does well, you are assured that the Board will declare dividends except in cases where the profit is reserved for business expansion and debt repayment.
The moment you buy dividend-offering stocks, you will have fewer worries about the stock fluctuating in the market. Dividends are a good source of income despite plummeting or even fixed stock prices. This cash flow can be ensured by first determining the stocks that generate high dividends.
Dividends also provide constant income. As long as your subscription to the capital stock is active and not in default, 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 the earnings is done on a regular basis.
Constant 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 the statement of account duly certified by the accountants. However, this is open to various fraudulent manipulations and machinations. In your investment of dividends there will be no occasion to give you false statements about your income.