Every investor in the stock market invests their money with the aim of increasing their net worth by adopting various investing strategies.

One of the strategies is the dividend investing strategy which investors might approach to increase their net worth. 

Risk Averse investors are more prone to invest in high dividend-yielding stocks. Dividends are the portion of the profit that the company gives to eligible shareholders who hold the shares as of the ex-date of the dividend.

The Board of directors of the company decides on paying the dividend desirable for the company depending upon various economic and financial factors. Thus, investors adopt the approach to purchasing stocks that issue dividends in an effort to generate a steady stream of passive income.

Most retired individuals see a high dividend yield stock as a passive source of investment for themselves. The investing strategy that investors adopt is known as a dividend investing strategy.

Let us understand in detail this investing strategy.