Dividend investing is a tried-and-true method for generating passive income by investing in companies that share a portion of their profits with shareholders. These dividends are typically distributed on a regular schedule, making them an attractive option for investors looking for predictable returns.

Dividend stocks are shares of companies that regularly distribute a portion of their earnings to shareholders in the form of dividends. These payouts often serve as an incentive for investors seeking steady income, making dividend stocks a popular choice for passive income strategies.

The stock market's current turbulence has left retail investors searching for reliable indicators to guide them back into equities. Among these indicators, the price-to-earnings (P/E) ratio stands out as one of the most commonly discussed metrics, having been a cornerstone of investing for nearly a century.