What are dividends?

A dividend is a distribution of a security's earnings, surplus, or profits that is paid out to shareholders. They are essentially a reward that a publicly-listed company will pay to investors who maintain an investment in the firm.

Many companies offer dividends (monthly or quarterly) to attract traders and keep their shareholders happy.

All you need to do is buy a stock or exchange-traded fund (ETF) that offers a dividend.

This is achieved by looking for the investment's dividend yield. Moreover, be sure to check the ex-dividend date (or reinvestment date): This is the period you need to buy or hold the stock to be eligible for a dividend.

So, yes, dividends are great!