Hello and welcome to Money Girls Quick and Dirty Tips for a richer life.

I'm your host Laura Adams. In this show I'll discuss some relatively stable and

less stressful investments, dividend paying stocks. Now on to stock dividends. Stock dividends are a way

that some companies share profit with their shareholders. Companies usually

send out a quarterly cash dividend payment to each investor based on the number of shares owned.

As you might guess, the companies that can pull this off are usually not young or still struggling for dominance in their marketplace.

They don't need to retain and reinvest every penny of profit back into the business,

like a fledgling company usually does.

No dividend-paying companies tend to be much more established and stable, such as

DuPont or Procter and Gamble. Contrast these stalwarts to successful but less mature non-dividend paying

stocks such as Netflix or Amazon.

dividend payers have already achieved a measure of success

but don't attract new investors with lofty visions of double digit growth.

Their allure to investors is the security of some immediate fixed income,

as well as a stock price that should be less volatile than non-dividend paying alternatives.

During bare markets, these more stable investments... the non-dividend paying alternatives.

During bare markets, these more stable investments

can help investors offset losses.

It's not uncommon to see dividend yields

in the neighborhood of 3 to 6%.

Right now, Coca Cola's dividend yield is 3.65%

and 3M's is 3.97%.

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