Reinvesting dividends through DRIPs or buying more shares can compound returns over time. A diversified portfolio of dividend stocks can provide reliable income and reduce investment risk.

Cash or stock dividends that are distributed to shareholders aren't recorded as an expense on a company's income statement. Cash and stock dividends don't affect a company's net income or profit.

These dividends are also known as ordinary dividends because they get taxed as ordinary income by the IRS. Nonqualified dividends include: The primary drawback of nonqualified dividends is that ...

Do Blue Chip Stocks Pay Dividends? Blue-chip stocks do not have to pay dividends by definition, but many do. Because most blue-chip companies are no longer in active growth phases, many choose to ...