Dividend-Paying Stocks allow investors to profit from a company’s success. Some companies, when they begin to see net profits, will reward shareholders with dividends. These companies keep a large portion of their profits to fund business and potentially expand but also issue a portion to shareholders, usually in a dollar amount per share.

Dividends are occasionally issued as stock or property and can take two forms: ordinary and qualified. Ordinary dividends count as taxable income, while qualified dividends are considered capital gains and receive a lower tax rate, accordingly.