Apart from having the value of the stocks increased, a stock holder will also get payments from the companies which they hold shares. These payments are given in order to share a portion of the profits in the company. The total profit earned by the company will be divided among the stockholders. The amount is decided by a board of directors and is usually paid quarterly.
Few companies pay dividends four times a year and some once a year. The more time there is between dividend payments will indicate the financial and profit problems of a company. After all, if the company is well-known for high dividend payments then more people will want to get in on the action. This can actually lead to increases in stock price and additional profit for the company which can result in even more dividend payments.
