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Building Wealth Through Dividends
Dividend investing is a strategy focused on stocks that pay regular dividends to shareholders.
Key Metrics to Understand
- Dividend Yield: Annual dividend divided by stock price
- Payout Ratio: Percentage of earnings paid as dividends
- Dividend Growth Rate: How fast dividends are increasing
Benefits of Dividend Investing
Dividends provide a steady income stream regardless of stock price movements. When reinvested, dividends compound over time, significantly boosting long-term returns.