Part 4/9:
Considering a personal financial goal is essential in dividend investing. For instance, if one aims to receive $10,000 per quarter in dividends, proper calculations are needed to determine the required number of shares to own, necessitating the purchase of higher-dividend-paying stocks if ownership of 40,000 shares of a lower-yield stock becomes unfeasible.
Characteristics of Dividend-Paying Companies
Typically, companies that pay dividends may not exhibit high growth rates, particularly as they mature. As firms stabilize, the transition from reinvestment of profits to dividend payouts often occurs, reflecting their capacity to share profits with investors.