The advent of zero-commission trading is bringing many retail investors into the market. And many of these investors are taking advantage of the opportunity to buy fractional shares. This allows investors to take a relatively small amount of money and spread it over several stocks. However, instead of buying full shares, they buy fractions of shares.
However, that doesn’t take away the appeal of dividend stocks. Any shareholder of record is entitled to a dividend that is proportionate to the amount of their investment. Even if they only own 0.25 shares, an investor can receive 25% of the company’s dividend per share.