Millions of investors own stocks that regularly pay out dividends of varying amounts per share, but few are familiar with an elite class of dividend stocks known as Dividend Aristocrats.
In this article, we'll break down exactly why Dividend Aristocrats are so attractive to investors and share a few aristocrat stocks that could help unlock the full potential of your portfolio.
A dividend is a payment from a company's profits to its shareholders. Just as all stocks are created differently, so are dividends. Different companies pay out different dividend amounts. For example, if a company pays 3% of its total stock price each quarter, an investor with $100 in that stock gets $3 back every quarter. Of course, this number can fluctuate vastly depending on a company's success.