Dividend Stocks - Page 6

Dividend stocks are shares in companies that distribute a portion of their earnings to shareholders in the form of dividends. These payments are usually made on a regular basis, such as quarterly, and can provide investors with a steady income stream in addition to any potential capital appreciation from the stock's price increase. Companies that issue dividend stocks are often well-established and financially stable, as they prioritize returning profits to shareholders. Investors often seek dividend stocks for income generation, particularly in retirement, or as part of a broader investment strategy that balances risk and return. The dividend yield, which is the annual dividend payment divided by the stock's current price, is a key metric used to evaluate the attractiveness of dividend stocks.