Dividend stocks pay dividends to their shareholders, representing a portion of the company’s profits. Not all companies offer dividends. But those that do allow their board of directors to decide the amount based on the company’s financial health and economic considerations.Dividends are typically paid out in cash on a monthly, quarterly or yearly basis. In the U.S, the vast majority of companies pay dividends on a quarterly basis. To be eligible for a dividend, an individual must be a shareholder of record ...