what is a dividend paying stock? what are the pros and what are the cons of them? and what are some examples?

Numerous stocks pay dividends. Some are Exxon, General Electric, most utility companies, A T & T.

If you want a really high dividend rate, try BPT or SJT, they are oil royalty trusts.

All stocks should pay dividends.
Dividends are the owners share of the profits.
Stock holders are the company is owners.

This is somewhat of an unusual question. It is a stock that pays a dividend. They r normally paid 4 times a year. Pros & cons. Pros r that u can expect a return from the stock in the form of the dividend. Cons? Some people might argue that the company might possibly better use the money to grow the business. Another con is that one must pay taxes on the dividends.

Examples: Google does not pay a dividend. It uses the money to grow the business. Its return on assets is about 14% so obviously share holders should in theory benefit more from having the company reinvest their earnings than in paying dividends.

BBT pays a dividend of of about 5.7% on its current stock price. That is not a bad return considering that banks pay about 3% interest on CDs now. Currently, the BBT dividend is tax advantaged & frequently raised whereas the CD interest is not. When u consider that the run of the mill average total return over the last 10 years of the average S&P 500 stock is 4.6%, that 5.7% dividend looks very attractive.

A stock that pays a dividend, essentially, shares profit with u every 3 months. its like getting paid to own stock. Sometimes its only a little amount, pennies or much more. Do ur research to figure out which ones u want. If u reinvest the dividend to buy more shares, u wind up with ''free'' stock. If you're young, this could pay off big time when u get around to retirement. Invest for the long run! l have one stock that pays 72 cents/share every 3 months. Does not sound like much, but l have 500 shares. Do the math. Finance is a good site to research stock with dividends.