Invest Yourself For a Better Retirementâ„¢

Dividend Stock

A dividend stock, also referred to as an income stock, is an ownership slice in a corporation that is expected to pay steady and predictable dividends (cash distributions to owners) to shareholders.

Dividend stocks are typically associated with businesses that are not expected to experience significant growth, are in mature and stable industries, and have strong and well established market positions.

These characteristics result in a steady stream of profits and relatively little need for significant capital investments, resulting in above-average cash from operations that can be returned to shareholders.

Filed Under

Glossary

Share This Post