Dividend stocks are shares of companies that pay out a portion of their earnings to shareholders in the form of dividends.

These stocks are a popular investment choice because they provide a steady stream of income, which can be particularly appealing to retirees or those looking for passive income.

The primary goal of dividend investing is not only to receive a regular income stream but also to benefit from long-term capital gains.

Investing in dividend stocks requires some research to identify companies that have a history of consistent payouts and strong financials to ensure they can continue paying dividends in the future.

Ultimately, investing in dividend stocks can be a smart choice for those looking for stable and reliable investments.

Investors looking to maximize their long-term gains should consider the power of dividend reinvestment programs (DRIPs).

Instead of collecting cash dividends, DRIPs allow investors to automatically reinvest those dividends back into buying more shares of the same company.

Over time, the compounding effect of regular reinvestments can significantly increase overall returns.

For example, a $10,000 investment in a company with a 4% dividend yield that reinvests dividends annually could grow to over $29,000 in 20 years, compared to just over $21,000 without dividend reinvestment.

With the ability to reinvest even small amounts of dividends, DRIPs can be a powerful tool for long-term investors seeking to build wealth.

When it comes to dividends, not all are created equal. That's because there are two types: eligible and non-eligible. The tax implications between the two are vastly different.

Eligible dividends, which are paid out of a corporation's income that has already been taxed at the corporate level, are taxed at a lower rate than non-eligible dividends, which are paid from income that hasn't been taxed at the corporate level.

This means that if you receive eligible dividends, you'll have more money in your pocket come tax time.

It's important to understand the difference between these two types of dividends and how they affect your tax bill, so you can make informed decisions about your investment strategy.

Investing in dividend-paying stocks in Canada is a wise choice for investors seeking stable and consistent income. Here are 17 Canadian stocks that have impressively paid dividends, and increased their dividends, for the last 20 years, making them a reliable option for any investor's portfolio.

These stocks come from a variety of industries, such as utilities, banking, and consumer goods, making it easy to diversify your investment. With their proven track record of paying dividends consistently over the years, investing in these stocks provides a level of security and long-term growth potential that few other investment options can match

Source: https://www.digrin.com/stocks/list/8-canadian-dividend-all-star-list/

Building your own dividend-paying stock portfolio can be daunting. I don't recommend it to anyone. It takes time, expertise, and courage to stick with an investment choice through the ups and downs.

Rather than creating this headache for yourself, choose a reliable dividend-paying ETF. Exchange Traded Funds are the easiest way to get broad diversification and automatic rebalancing to Canadian dividend-paying companies.

With an ETF, you don't need to become an expert in studying a company's financial strength or make market timing bets to buy and sell stocks. A Canadian dividend-paying ETF can do it all for you.

Here are some examples to get you started: