What Is Dividend Investing?

Dividend investing involves buying stocks that pay regular dividends, providing income without relying on stock price appreciation.

Dividend yield is a key metric to compare income potential across stocks, but it should not be the only factor considered.

Yield on cost measures income relative to the original investment price, which helps in assessing long-term returns.

Good dividend stocks often have a consistent payment history, growing dividends, sustainable payout ratios, strong cash flow, and a defensible business model.