A dividend is the distribution of reward from a portion of company’s earnings and is paid to a class of its shareholders. A dividend is the distribution of reward from a portion of company’s earnings and is paid to a class of its shareholders. Dividends are decided and managed by the company’s board of directors, though they must be approved by the shareholders through their voting rights. Dividends can be issued as cash payments, as shares of stock, or other property, though cash dividends are the most common. Along with companies, various mutual funds and exchange traded funds (ETF) also pay dividends.
The selection of high yielding dividend stocks I have found to be quite rewarding in the long run. This investing method is still my favorite way of creating a passive income and I find the time and effort required implementing it, quite rewarding.