Dividends are payments made by a company to its shareholders, usually from its profits. They're typically distributed quarterly, though some companies pay them monthly or annually. Not all stocks pay dividends—they're most commonly associated with established, profitable companies, often referred to as "blue-chip" stocks. These companies, like those in utilities or consumer staples, tend to have steady cash flows and prioritize returning value to shareholders. However, dividends aren't guaranteed; companies can reduce or eliminate them if financial conditions worsen. Growth stocks, on the other hand, often reinvest profits back into the business rather than paying dividends.