Shares/Stock Do your stocks give you annual dividends?

[Alexandoy]

The dividend is the excess profit of the company. It is assumed that you already know the stocks are shares of ownership of a corporation. It is usual for big corporations to distribute to the owners the excess profit in the form of dividends which can be stock dividend or cash dividend. As a stockholder you are entitled to the dividend. The cash dividend is the amount per share of stock while the stock dividend is the number of stocks that you earn based on the number of stocks that you presently hold. In my case, I am to receive 30 cents per share of stocks that I have.

One good thing with a corporation that gives dividends is that their stocks can be considered blue chip which is reliable in terms of existence in the market.

 

[Deleted member 28127]

Most of the internet traders are changing stocks investment during the year so this is true for a minority of stocks traders that stays long a year whit investing in one company or a few limited ones.

 

[Suba]

One of the advantages if we receive stock dividends is that it is not subject to income tax, because the shares received are not cash dividends. In my opinion, bluechip stocks will depend on the company that issued the shares and can provide consistent dividends. The company's performance is solid, so that the profit generated is consistent. Companies that issue bluechip shares are not easily shaken by economic conditions and inflation.