Dividend Investing Strategy

Dividend investing is a strategy focused on buying stocks that pay a regular dividend to shareholders. Investors seek companies with a strong history of stable or growing dividends, often favoring established, financially healthy businesses in sectors like utilities, banking, or consumer staples.

This approach provides a steady stream of passive income, which can be reinvested to compound returns or used for living expenses in retirement. While dividend investing can offer lower volatility and more predictable returns, it may sacrifice some growth potential compared to high-growth stocks that reinvest profits rather than distribute them.

The topic of dividend investing can be broad depending on the investor’s strategy and goals.