Dividends from stocks are payments made by a company to its shareholders, usually as a way to distribute a portion of its profits. When you own shares of a company, you may receive dividends, which can be paid out quarterly, semi-annually, or annually. The amount of the dividend is determined by the company's board of directors and can vary based on the company's performance and financial health. Investors often view dividends as a sign of a company's stability and profitability. Companies that consistently pay dividends, like Coca-Cola or Procter & Gamble, are often seen as reliable investments. Dividends can provide a steady income stream, making them attractive to both individual and institutional investors.