10 Top-Rated, Dividend-Paying Stocks

Companies sometimes return profits in the form of cash dividends to their shareholders. Most firms that pay dividends are usually more mature and belong to more stable industries such as utilities or REITs.

Young growth companies generally don’t pay dividends, as they tend to reinvest earnings to help the firm grow. It’s important to note that while it’s nice to sit with a stock and collect a fat dividend check every quarter, one should not pick a stock just because it pays the highest dividend. Company-specific news or even general market weakness can sometimes wipe out a year’s worth of dividends in a heartbeat.