10 Things Every Dividend Investor Should Know

9. Dividend-Paying Companies Tend to Have Higher Earnings Growth:

Dividend payments are typically made from a company’s profits or earnings, so a company that is generating strong earnings growth may be more likely to pay dividends. Consistent growth in payouts mainly provides an indication of the respective company’s financial strength and stability. For instance, despite last year’s challenging environment, companies in the S&P 500 distributed a record $565 billion to shareholders in dividends, up from $511.2 billion in 2021.