Why Income Doesn’t Equal Wealth

Why Income Doesn’t Equal Wealth

When companies earn reliable profits, they often share some of that cash with shareholders. Investors can choose to reinvest dividends or use them to cover living expenses.

When evaluating a dividend paying stock, investors should consider a company’s past track record and future financial goals to evaluate its ability to sustain dividend payments in tougher market conditions. This helps reduce volatility and risk in a portfolio.

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