Everybody longs for a blissful retirement after working hard for decades. Investing your money in stocks is an effective way of achieving the dream retirement you seek. Not just any stocks, though. We are talking about those that pay out steady and consistent dividends. These dividends will form the bedrock of your stream of passive income as you enjoy your golden years. The key to building and growing these dividends is in one magical word – compounding. Read on to find out how compounding your money in dividend stocks can help you secure a comfortable retirement.

Building your portfolio’s foundation

As you embark on your journey as an income investor, you may be wondering how to go about building a dividends portfolio. First off, ensure that you set aside at least six months of expenses as an emergency fund. This money should help to tide over any emergencies and should not be used for investments....