are all stocks dividend stocks

Jack

I've been diving into the stock market lately and noticed that some stocks pay dividends while others don't. This got me wondering: are all stocks dividend stocks? I always assumed companies shared profits with shareholders, but now I'm realizing it might not be that simple. What determines whether a stock pays dividends? Are there specific types of companies more likely to offer them, or is it just a matter of company policy?

James

Not all stocks pay dividends—it depends on the company's goals. Younger or high-growth companies like tech startups often reinvest profits instead of paying dividends to fuel expansion, while established firms like Coca-Cola or Johnson & Johnson tend to reward shareholders with regular payouts.

Valentina

I learned this the hard way after buying shares in a flashy tech company expecting dividends, only to find out they’ve never paid them! If passive income is your goal, focus on sectors like utilities or consumer staples, which are more likely to offer consistent dividends.