Question

What type of investment pays you a dividend?

Answer 1

Stocks pays a good sum of dividends.

Explanation:

Dividends are the sum of money that is paid by a company or a firm to its shareholders or stakeholders regularly (generally annually) based on the reserves or stocks that they hold in that firm or business entity.

Dividends are generally paid in the form of cash, scrip or property. Investments in the industries like banking, real estate or retailing pays a good sum of dividends.

Most US dividend stocks pay investors a part of amount each quarter, and the top ones increase their payouts timely, so investors can build an annuity-like cash stream.

There are four types of dividends namely, cash, stock hybrid and property dividend.