Have you ever heard of stories where others are able to reap tens of thousands a month without working at all? The amount of cash flow they receive is sufficient for them to retire comfortably at a relatively young age.

But if you are like most of us and do not possess a huge amount of capital, bringing in thousand-dollar passive income doesn’t seem like achievable in the near horizon.

Don’t worry, by the time you’ve read finish this article, we assure you that you will have a clearer direction on your journey towards financial freedom from dividend investing.

What is a dividend?

A dividend is a distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash, stock or other assets.

How and why does the company pay shareholders dividend?

A stock represents a fractional