Dividends are one way in which companies “share the wealth” generated from running the business. They are usually a cash payment, often drawn from earnings, paid to the investors of a company – the shareholders. These are paid on an annual or, more commonly, a quarterly basis. The companies that pay them are usually more stable and established, not “fast growers.” But the value dividends represent for investors should not be underestimated.
If you’re interested in taking advantage of the benefits of rules-based dividend-investing but want to make sure you avoid companies that deal in unethical business activities, consider the Azzad Dividend Portfolio, a socially responsible way to track a dividend index.