What Are Dividends? And How To Live On This Income?

Dividends is a way to profit that everyone would like to live with this income, however there are few people who have earned this income.

This type of income is called passive income, i.e. you don’t have to do absolutely anything to earn your money. This way you will be receiving a “salary” in your comfort just waiting for the money to enter the account.
There are great chances of you becoming a millionaire living on dividends, if you reinvest, applying future investments. This way you will be moving and creating infinite money, where you will always be profiting more and more.

How to Find Good Dividends?
Firstly, you have to see a stock that pays dividends, normally they are distributors of dividend yield, a percentage of earnings, close to 10% of the share price.

The basis is to find a stock that has a strong tendency to pay good value.

Assume a cost per share of $10 and pay a 20% dividend, which is $2.

If the share price triples, the cost will be R$30, the yield will be 20%, and the dividend will be R$6.

However, for those who invested only BRL 10 and now receive BRL 6, the dividend actually ends up being 60%.

In this case you have to have a good observation in the financial market to enter into a good action that can give you a great profit over time.

It is normal to realize that there are only two reasons to invest in this stock, which are that it has a cheap value and that it pays well in dividends, as already mentioned.