Generating passive income through dividends is particularly important these days, as the stock market has had negative returns for the better part of a year now. But it is perhaps even more important in retirement, as that added income can come in handy. It can certainly give you some spending money to supplement your retirement accounts or Social Security checks.

Here are three steps to earn about $300 per quarter, or $100 per month, in dividend income.

A dividend yield is the percentage of the share price that the company pays out in dividends. The average dividend yield on the S&P 500 is about 1.7% right now. Generally, a yield that is over that is considered pretty good. To determine if the dividend is sustainable, the payout ratio -- the percentage of earnings used to pay the dividend -- should ideally be below 50% in most cases.

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Source Fool.com