A dividend stock is a type of share in a company that pays a portion of its earnings to shareholders, typically on a regular basis, such as quarterly or annually. This payment, known as a dividend, provides investors with a steady income stream in addition to any potential profits from selling the stock at a higher price. Investing in dividend stocks can be an attractive option for those seeking passive income or a more stable investment. Many well-established companies, often referred to as blue-chip stocks, are known for consistently paying dividends, making them popular choices for income-focused investors.