Dividends are cash payments from a business to its owners. A portfolio of dividend-paying equities can grow into a perpetual income spring that requires no selling of principal.
The Dividend Aristocrats — companies that have raised dividends every year for 25+ years — are a screened universe of remarkable consistency. They underperform high-growth in bull markets and outperform in everything else.
Reinvest dividends in the accumulation phase. Live on dividends in the distribution phase. The transition is the crossing of the river.
The Seal of the Chamber
A spring fed by ownership flows forever.