Feb 7, 1999. A stock is a certificate of ownership in a corporation. The latter performs more like a debt instrument, with a stated dividend return. A dividend is the company's way of sharing its earnings and profits with the stockholder, with a cash payment each quarter. Not all profitable companies pay dividends, however.
Some outstanding corporations reinvest all their profits back into growing the company.
Growth and income stocks pay a meaningful dividend, say at least 2 percent. Growth stock companies concentrate more on the growth of sales and earnings, without any particular concern for paying out dividends. Aggressive growth stocks are those of newer, more speculative companies that carry greater risks. George Why pay more than 5 cents a minute for long distance. Online Investing is a wonderful guide for using the Internet to find, research, and buy winning stocks.