Dividend stocks are shares in companies that pay out a portion of their earnings to shareholders in the form of dividends. These payments can provide a steady income stream, making them attractive to investors seeking regular cash flow. Companies that consistently pay dividends are often seen as financially stable and reliable. Investing in dividend stocks can be a strategic way to build wealth over time. Reinvesting dividends can lead to compound growth, enhancing overall returns. Many investors look for stocks with a history of increasing dividends, as this can indicate a company's strong performance and commitment to returning value to shareholders.