Dividend investing is less about chasing yield and more about building sustainable income. jittawit21/Shutterstock
A dividend is a cash payment a company makes to its shareholders, typically every quarter, as a share of its profits. Dividend investing means building a portfolio of stocks or funds that pay these distributions, creating an income stream alongside share price growth.
If you already have a brokerage account and own index funds, you’re closer than you think. The key is understanding how yield works, what makes a dividend sustainable, and which strategy fits your situation.
What Is a Dividend?
When a profitable company returns money to investors, it can buy back its own stock or pay a dividend: the “direct cash-to-your-account” version.
