Most of the companies listed in the stock exchange pay out either a yearly, quarterly or monthly dividend for their shareholders. The dividend is basically a part of the company's profit which they feel like distributing to the owners instead of reinvesting it into growing their business even more. Usually the dividend yield is between 2% and 5% but obviously there are exceptions on both sides of that scale. For a couple of years now I have invested money into companies paying a decent, steady and growing dividend in order to secure my finances for retirement. Currently my dividend income is not much, but those dividends go into buying more shares and this way, year after year, my dividend income is increasing. One interesting thing to do is to take a look at dividend aristocrats, they are companies which have constantly increased their yearly dividend payout for a long time. Anyone else using the stock market and it's dividends as a way to save up for retirement?
