Dividend investing

Merits, and considerations

A DIVIDEND is a payment made by a company to its shareholders, and usually comes from a portion of earnings that a business decides to release to investors, as opposed to reinvesting back into the business.

A history of reliable and consistent dividends declared by a business are often a sign of a healthy and growing one. This article highlights a few key merits when investing in dividend-paying companies, as well as some factors that investors should be cognisant of when selecting these companies.

Merits
A source of income that grows over time

Dividends provide investors with a source of income that can be useful to fund lifestyle needs.

In particular, quality businesses that pay…