We have come to the final part of our income investing series. You can check out the first five parts here, here, here, here and here. In this final section, we explore the key attributes of a dividend investor, compounding and key terms you need to know.

Remaining calm

You should avoid caring too much about the share price because just like any other stock, dividend stocks may experience volatility in the short term. But you should never panic. If the stock has solid fundamentals, temporary blips offer opportunities to increase your position at a lower price, improving future dividend yield. During the COVID-19 pandemic, REITs and even banks had to cut their dividends to preserve liquidity and strengthen their cash position. Despite this cut, you should keep in mind that dividend-paying companies remain one of the most reliable sources of income over a long horizon.

Balance sheet strength

Great dividend stocks usually have a sturdy balance sheet....