Co-produced by Stanford Chemist. This article was first released on September 24th, 2019.
Dividend investing is a tried and true investment strategy that has become popular amongst many individuals of every flavor. These are cash payments that represent an investors equity stake in a company and is their share of the profits. For closed-end funds, these are more properly called distributions. At the basic core - dividends are cash that is paid out from the companies income and distributions are represented as cash from multiple sources. These sources can include ordinary income (qualified and