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Dividend investing is a popular strategy for earning passive income. Investors receive regular payments from company profits, which can be reinvested to grow wealth over time. The 'dividend snowball effect' refers to the compounding of these payments, leading to significant long-term gains. With careful planning, investors can aim for daily or monthly income targets, such as $100 per day or $1,000 per month, through a diversified portfolio of dividend-paying stocks.

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