Buying stocks themselves – the basis of dividends

Although not every company's stock will pay dividends, they are things to consider when buying stocks. There are a number of advantages to paying dividends in your portfolio.

What is the dividend first? In short, it is part of the company's profits to its shareholders. An obvious point here is that dividends are paid only when the company makes a profit. This is not to say that all listed companies are making money. Profits not paid to shareholders are called retained earnings. In addition, companies may pay dividends on a monthly or monthly basis. For this reason, dividends are generally calculated on an annual basis.