The regular dividend paying stocks safeguard the portfolio against market risks and volatile returns, as dividend-paying-companies are usually well-established and mature.
Dividend investing can be a great investment strategy. Dividend stocks have historically outperformed the S&P 500 with less volatility. That's because dividend stocks provide two sources of return: regular income from dividend payments and capital appreci
Dividend income tempts investors to hold stocks for a long-term and reduces selling and buying expenses (brokerage, commission, or fees). growing industry.
Dividends are usually cash payments, often drawn from earnings, paid to the shareholders annually, sem-annually, or quarterly.
Dividends can be ordinary or qualified. Ordinary dividends are taxable as ordinary income, and qualified dividends are taxed at lower capital gain rates.
Factors influencing dividend decisions are growth and profitability, liquidity, managerial control, legal constraints, among others.