Should You Use Dividends to Supplement Your Income or Reinvest Dividends?
Whether it’s a bull market or a bear market, one thing is relatively constant in stock market investing: you want to have at least some money in your portfolio in dividend-paying stocks. Dividends – the payments distributed to shareholders each quarter – are incredibly valuable for any investment strategy because they’re great for growing the value of your portfolio. The key here is investing in good dividend stocks and deciding on the best use of those dividend payouts. Some people choose to supplement income from their day jobs with dividends, while others choose to reinvest those dividends back into their …