A dividend is a return on your investment paid out at intervals throughout the year, typically on a quarterly cycle, by the company in which you purchased shares.
Established, financially secure companies are more likely to issue dividends, an indication that funds are plentiful and that the company is able to both reinvest in its operations and reward shareholders.
Many investors put their money into dividend-paying stocks because they offer a significantly better return than bonds, and they are typically not high-risk investments.
