The Simplest Explanation of Options

The Simplest Explanation of Options

A regular cash payment companies make to shareholders from their profits. Dividends can be paid in taxable brokerage accounts or tax-advantaged retirement accounts like IRAs.

Investors who invest in dividend-paying stocks seek steady income as a buffer against market downturns. Choosing companies that consistently pay and increase dividends can help you find sustainable payouts, but understanding metrics like payout ratios and coverage ratios is key.

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