The Truth On Dividend Investing (Can You Retire Off Of Dividends?)

Are Dividends Too Good To Be True? (Credit: Storyblocks)

Dividend Stocks have become a hot topic over the last year.

Just take a look at this google trends chart that I’ve pulled up on the term “Dividend Investing.”

Google Trends Chart On The Term “Dividend Investing” (Credit: Google Trends)

These numbers on the X-axis, represent the magnitude of the search interest over time, where a value of 100 indicates peak interest, and a value of zero indicates no interest at all or not enough data to show. As you can see — starting from the 2nd half of 2019, the term “Dividend Investing” started to rise in popularity, touching the peak of the chart twice already.

And even just a simple search online will bring you thousands and thousands of articles and videos on this topic. And what’s really interesting is that a good number of this content, loves to focus around finding ways to live off of these dividends — but they’re really only scratching the surface of what dividend investing is.

So today, in this article, we’ll dive into all of the details around what dividends are, how they work, and some core truths you need to know about dividend stocks before you invest in them.