We often hear that Millennials are terrible investors because most Millennials entered the workforce during the 2008 financial crisis. Afterward, many hesitated to invest after seeing their families lose money, and those who often invested very conservatively.
Dividends are a portion of the company’s earnings that are distributed to shareholders. In addition to the value of a company’s stock going up, dividends are an additional payment sent to shareholders simply for owning the company.
Dividend Investing is a growing trend investment strategy involving owning primarily stocks that offer dividends. The idea is that by owning enough stocks that offer dividends, those dividend payments can eventually entirely replace your income for retirement.
In the S&P 500, which gauges 500 popular American companies. The average dividend yield of the S&P 500 is 2.00%. So, for every $100 you invest in the S&P 500, you will earn $2 annually in dividend payments.