Investing in dividends is one of the main investing strategies. Investors who want to benefit from regular income flows in the long term apply to this strategy.
As an investor using dividend investing strategy, you can create a stock portfolio which includes the stocks that pay regular and good dividends, and then you can see the cash flows from this portfolio to your brokerage account.
Apart from regular income stream, dividend investing strategy also provide some other advantages such as avoiding from market fluctuations and bear markets, hedging inflation, compounding growth of dividend by reinvesting them to the shares, etc.
In order to build a successful dividend portfolio, you can select 15-20 stocks from 4 or 5 industries. These companies should be selected from the companies that raise dividend for long history with a modest payout ratios. Also, you should reinvest the dividends with a dividend reinvestment plan or DRIP.