What Are Stock Dividends? How Important Are They?

[Good-Person]

As far as I have read, dividends are the "profits" that are earned on stock purchases. This means that when the stock performs much better in the stock market, the buyer of the share may receive gains on his investments. So, how are they important for a trader? I think that a trader could reinvest the dividend share in the market and earn more money. What do you think about different strategies involving dividends?

 

[Planbizzle]

Stock dividends are payments made to shareholders by firms from profits or retained earnings. Dividends can indicate a corporation's economic well-being and may attract investors.

 

[Kane]

Some stock investments give you a regular return on your investment, this is called stock dividends. Depending on the company's policy, you will receive quarterly or yearly dividends.

 

[Good-Person]

Stock dividends are payments made to shareholders by firms from profits or retained earnings. Dividends can indicate a corporation's economic well-being and may attract investors.

I think that stock dividends and the percentage of such kind of dividends are subjected to many different things. I think that the profitability factor is one of the most important things which is considered by investors in the first place.