A great deal of focus has been placed on dividend investing lately, and for good reason: Dividend stocks (especially dividend aristocrats) often have solid fundamentals, and can usually weather stock market downturns. On top of that, you receive regular income from dividend stocks.
Stocks that pay dividends are paying out portions of their profits to shareholders. This money is paid out monthly, quarterly, semi-annually, or annually, and is paid out regardless of share price. You can use dividend income for whatever you want; it’s yours and can’t be taken back.
One aspect of dividend investing is taking part in a DRIP – a Dividend Re-Invesment Plan. Let’s explore what DRIP investing is and how it can grow your wealth.