So, I read a guy boasting about making a ridiculous amount of money, and he attributed it to placing all of his money in what he called "Aristocrat Stocks". Not knowing what that guy was talking about, I figured some general questions and answers would be a good place to start. Here are some basic dividend questions and answers. If you have any suggestions or questions please let me know via the chat bot on the bottom right. - thanks, and I love you

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Q. What are "Aristocrat Stocks"?

A. "Aristocrat Stocks", or “The Dividend Aristocrats” are S&P 500 index constituents that have increased their dividend payouts for 25 consecutive years or more.

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Q. Why do dividends matter?

A. According to Fidelity,

Dividend-paying stocks provide a way for investors to get paid during rocky market periods. When capital gains are hard to achieve, dividends provide a nice hedge against inflation.

 

The next few questions are according to Investopedia.

Q. What are dividends?

A. Dividends are the portion of a company's profits that are distributed to shareholders.
 

Q. What is a dividend yield?

A. The dividend yield is a financial ratio that represents the dividend income per share divided by the price per share. For example, a stock priced at $100 per share that receives a dividend payment of $8 is said to have a yield of 8%.

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Q. What is a good dividend yield?

A. According to EFinanceManagement,

4 to 6 percent is a good yield.

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Q. What is total return?

A. Total return is the total return accounts for interest, dividends, and increases in share price among other capital gains.

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Q. What is more important, dividend yield or total return?

A. If you are relying on your investments to provide consistent income, the dividend yield is more important. If you have a long-term investment horizon, and plan on holding a portfolio for a long time, it makes more sense to focus on total return.