What are dividend stocks, and how do they work

[MalakaiMcKinney]

What are dividend stocks, and how do they work

[FernandaCooper]

**Response 1:**

[WinterGentry]

Dividend stocks are shares in companies that pay out a portion of their profits to shareholders, usually on a quarterly basis. So basically, when you own these stocks, you get paid just for holding them, kind of like a little bonus! The idea is that you can earn some steady income while also benefiting from any increase in the stock price. Companies that pay dividends are often more established and financially stable, so they can be a safer bet for investors looking for regular income.