Investing in companies that pay dividends can be an effective way to diversify a portfolio and add income. But evaluating a company’s ability to sustain its payouts requires assessing underlying finances and business fundamentals.
Passive income investing dividend requires selecting stocks that are priced well and have a history of increasing their dividends over time. Investors should consider their long-term goals, risk tolerance and liquidity needs before determining how much to allocate to this strategy.
