Build passive income through strong, consistent-paying companies.
Dividends are portions of a company's profits paid out to shareholders—usually quarterly. They're most common in mature, stable companies (e.g. Coca-Cola, Johnson & Johnson, etc).
Dividends provide consistent cash flow, can be reinvested to compound growth, and are historically responsible for over 40% of S&P 500's total return.
Dividend Yield = Dividend / Stock Price
Payout Ratio = % of earnings paid out
Dividend Growth = Rising payments over time
Dividend Yield = Dividend / Stock Price
Payout Ratio = % of earnings paid out
Dividend Growth = Rising payments over time
Tip: Look for companies with low payout ratios + consistent dividend increases.
