Question
What Are Dividend Stocks?
Answer
Dividend paying stocks are usually older, stable companies that have a strong track record of earnings. Once long term earnings has been established, a company will often declare a dividend, giving some profits back to its investors. A dividend is paid to its shareholders in quarterly installment. Investors like these stocks because they are known to be generally safer. Often times older investors, looking at retirement will focus on dividend paying stocks for the reasons mentioned. Younger investors will often times take higher risks with companies without a track record of long term earnings and dividends.
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