Dividend investing is a strategy in which an investor focuses on buying stocks of companies that pay dividends, which are regular payments made to shareholders from a company's profits. The goal is to earn a steady stream of income from dividends, rather than solely relying on capital appreciation. Dividend-paying stocks can provide a reliable source of income for investors, especially during market downturns when stock prices may be declining. Dividend yields, which are the dividends paid per share as a percentage of the stock price, can also serve as an indicator of a company's financial stability and its ability to generate steady cash flow. Dividend investing can be a good strategy for investors looking for a regular income stream and also for those who want to diversify their portfolio in order to potentially reduce overall risk.

Dividend investing is a strategy where investors focus on buying stocks of companies that regularly pay dividends. Dividends are portions of a company's profits distributed to shareholders, typically in cash or additional shares. This strategy is popular among long-term investors seeking a steady income stream and capital appreciation over time.

Companies with strong financial health, consistent earnings, and stable cash flow usually offer reliable dividends. Dividend investors often prioritize companies with a history of increasing dividend payments, known as "dividend aristocrats." The goal is to build a portfolio that generates passive income, reinvesting dividends for compounding growth or using them for regular income.

This approach tends to focus on lower-risk, blue-chip stocks, making it attractive for conservative, income-focused investors.