stock dividends

How Do Stock Dividends Work?

stock dividends earned on a share are regular payments of profit made to you on investing in a particular company’s stock. However, you must note that the stocks or shares of all companies don’t pay dividends.

The traditional working principle of dividends follows the system that by buying a share or a stock in a company, you are a part of it being an investor. You have the right to the profit of the company being a shareholder or investor.

You get a part of the profit of the company which is known as a dividend. Most companies pay dividends to shareholders on a regular basis. Some, however, don’t pay. But the numbers of non-dividend paying companies are few.