Dividends are actually the distribution of company earnings or profits among the investors of the company.It can be in two forms either cash or stock.Generally they are paid once in every quarter,but it may vary from company to company.A portion of the total profit of the company is shared with all the investors.Dividends provide an incentive to own stock in stable companies even if they are not experiencing much growth. Companies are not required to pay dividends. The companies that offer dividends are most often companies that have progressed beyond the growth phase.

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