A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a company earns a profit or surplus, the board of directors may decide to reinvest some or all of the money in the business or pay it out to shareholders as a dividend. Next, dividends can be issued as cash payments, shares of stock, or other property.
Moving along, dividends are not deductible expenses for the corporation, but they may be taxable income for the shareholder, depending on the tax laws of the country in which the shareholder resides. Dividends are typically paid quarterly, but they may also be paid semi-annually or annually. Some companies even pay dividends monthly.
Dividend stocks tend to be less volatile than growth stocks, but they can still fluctuate in price. As a result, it’s important to make sure you’re not paying too much for a stock that doesn’t offer much upside potential. By doing your homework and carefully evaluating each stock, you can help ensure that your portfolio is well-positioned for success. With that, let’s look at two top dividend stocks to check out in the stock market this week.
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