How to Build a Dividend Portfolio for a Steady Passive Income Stream

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Building a dividend portfolio is one of the most reliable ways to create a steady passive income stream. With the right strategy, you can grow your wealth over time while receiving regular payouts from dividend-paying stocks. If you’re interested in earning passive income without having to sell off your investments, this guide will walk you through the steps of building and managing a dividend portfolio.

1. What is a Dividend Portfolio?

A dividend portfolio is a collection of stocks from companies that pay regular dividends to their shareholders. Dividends are a portion of a company’s profits, distributed to investors, usually on a quarterly basis. These payments can supplement your income or be reinvested to increase your wealth over time.

Investors who want a passive income often focus on dividend-paying stocks because these companies tend to be financially stable, and dividends provide a way to earn money even if stock prices fluctuate.

2. Steps to Building a Dividend Portfolio

Step 1: Set Your Financial Goals

Before diving into dividend investing, it’s important to clarify your financial goals. Are you looking for high income…