What exactly is a dividend and why do companies pay them?

Dividends are a payment the company gives you for owning stock in their company. Owning stock in a company means that you are a partial owner of the company (as small as that ownership may be). Because more than 80% of the companies in the S&P500 pay dividends, you can…

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The tax advantage of Qualified Dividends

Qualified dividends give you a passive income advantage over your ordinary working earned income. By investing money into companies that pay qualified dividends, you can get a passive income stream that has a major tax advantage. If you are in the 10-12% regular income tax bracket, you pay a 0%…

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