What Is Dividend Investing?
Dividends are your share of company profits. Buy-and-hold quality dividend stocks and you get paid quarterly, like clockwork, just for being a shareholder.
Why Dividends Work
- Passive income ??? trade once, get paid forever
- Inflation-beating ??? dividends grow over time
- Compounding via DRIPs (Dividend Reinvestment Plans)
- Safer than growth stocks during crashes
JSE Top Dividend Payers (Historical)
Consider companies with a long track record of growing dividends: banks, insurers, telecoms, food producers, and tobacco. Look for payout ratios below 75% and 5+ years of consecutive increases.
Tax Tip
Dividends Withholding Tax (DWT) is 20% in SA. Use your TFSA for maximum tax-free compounding of dividend income.
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