The Ins And Outs Of Dividend Investing

Dividends are a critical component of investing in stocks, and at their most simple are blissfully easy to understand. A company makes profits and pays a portion of those profits to its shareholders on a regular – typically quarterly – basis.

The basic idea of getting paid to hold onto a stock while you wait for its share price to rise is great for pretty much any investor . But of course, stocks can also go down and that’s where the various other elements that go into evaluating dividends come into play. John Dobosz, editor of the Forbes Dividend Investor newsletter, and I discuss the ins and outs of investing in dividends, from how to calculate metrics like dividend yield and payout ratio to what to look when finding stocks that put money in your pocket.

Source: Forbes

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