One of the many aims an investor has is to make money from dividends. Most people would have heard about dividends, but are not sure how they work. This article gives a quick look into how dividends work and how you can create a sustainable portfolio that pays you regularly. HOW DO I MAKE MONEY FROM DIVIDEND STOCKS? The short answer is to invest in a company that earns a profit. Duh. Before dividends are decided upon, the management of a company would have to decide on the following:

• How much of their profits should be reinvested in company growth
• How much to be used to clear debt
• How much to be used to buy back stock

Ideally, investors should be looking for companies with a good chance of increasing the dividend each year. By investing in these companies, you would be able to grow your cash flow as the company’s sales and profits grow,so it’s believed......