What Is A Dividend – A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business and pay a proportion of the profit as a dividend to shareholders. (Source – Wikipedia)
Is a dividend portfolio a good idea?
I believe dividend investing is the easiest and simplest way for the average person to start generating a passive income. It really doesn’t require much money to get started either. If you are new to investing, I think dividend stocks are a great way to start. Hopefully the stock appreciates in value, meanwhile the company gives you money for holding their stock. That first time you see money get deposited into your account without you doing anything, its a wonderful feeling.
The power of the dividend stock price appreciation combined with Dividend Reinvestment and finally dividend raises can create a massive pile of cash for retirement in the future.
This is our current dividend portfolio, to give you a general idea of what stocks others hold.
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