Dividends are paid out of earnings, making them a reliable source of income from "summary" of The Little Book of Big Dividends by Charles B. Carlson
Dividends are a crucial component of investing in stocks. They represent a portion of a company's profits that are distributed to shareholders. This distribution is typically made on a regular basis, whether monthly, quarterly, or annually. The important thing to note is that dividends are paid out of earnings. This is what makes them a reliable source of income for investors. Earnings are the profits that a company generates from its operations. By paying dividends out of earnings, companies demonstrate their ability to sustain the payouts over the long term. This is because earnings are a measure of a company's financial health and performance. Companies that consistently generate earnings are more likely to continue paying dividends to their shareholders. In essence...Similar Posts
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