Get paid every quarter just for holding
Some companies pay you just for owning their stock. No selling required. The cash just shows up. These payments are called dividends. ⠀ When a company makes a profit, it can reinvest that money to grow, or pay some of it to shareholders. That payout is your dividend, and it usually lands in your account every quarter. ⠀ Say a stock pays a 4% dividend. On a $10,000 holding, that is $400 a year, just for holding it while you sleep. ⠀ But here is the real magic. You can automatically reinvest those dividends, buying more shares, which pay more dividends, which buy even more shares. It is a compounding snowball of income. ⠀ Over the last century, reinvested dividends drove most of the stock market's total return. ⠀ Some firms have raised their dividend for 50 years straight. They are called dividend aristocrats. ⠀ Getting paid to wait is a beautiful thing. ⠀ I built an app that teaches you exactly how this works. Learn finance by scrolling. Link in bio. ⠀ #dividends #investing #passiveincome #stockmarket #financialliteracy
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