Dividend investing is one of the most popular strategies among retail investors seeking a combination of stability and passive income. A long-term buy-and-hold approach for stalwart dividend players like The Coca-Cola Co. (NYSE: KO) or Johnson & Johnson (NYSE: JNJ) rewards patience and a commitment to reinvesting payouts over time.
Many investors seek dividend yields in the 2-3% range and dividend payout ratios below about 80%, taking these as indicators of a company's ability to continue paying dividends sustainably for an extended period of time.
