What's The Deal With Dividend Investing?

Dividend investing is a very simple approach to investment, which makes it very accessible and intuitive for small and part-time investors. It’s also a smart approach that has been shown to perform well over time compared to other strategies like passive investing. Essentially, the idea is that the main thing your stock portfolio should do for you is to generate income.

When you’re investing to save up for retirement, a dividend investing strategy can be a very good choice, provided you reinvest your dividends whenever they’re paid out, instead of taking the cash and spending it. In other words, during your saving years, you should use the income generated by stocks to buy more income-generating stocks. This will help you grow your portfolio more rapidly than if you were just using your monthly savings to buy stocks, which will mean that you’ll have a lot more income to rely on when you retire.

Source: Money Web

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