Dividend investing focuses on purchasing stocks that pay regular dividends—cash payments to shareholders from company profits. This strategy provides both income and potential capital appreciation. Investors often target established, financially stable companies with a track record of consistent dividend payouts. Dividend yield, payout ratio, and dividend history are key metrics to evaluate. Dividend investing suits individuals seeking passive income or aiming to reinvest dividends for compounding. Reinvested dividends can significantly enhance total returns over time. It also offers stability during market downturns, as dividend-paying stocks tend to be less volatile. Sectors like utilities, FMCG, and banking often host good dividend stocks. However, investors must ensure the company’s financials support future dividends. Dividend investing is not just about high yields—it’s about sustainability. Long-term dividend growth investing, where dividends increase year after year, can be a powerful wealth creation strategy with relatively lower risk.