Dividend Investing

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In the last year or so, I have seen a renewed interest in “dividend investing”.  Dividend investing means that people select what stocks to buy based primarily on the amount of dividends that the company pays as a percentage of the price of the stock.  This is called the Dividend Yield.  Before getting into more details, let me define some terms and concepts:

What are dividends and why do companies give them?  A dividend occurs when a company distributes a share ...

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