---
title: "Is buying shares for dividends even worth it?"  
description: "Is buying shares for dividends even worth it?"  
author: "nitya singh"  
published: 2018-03-06  
canonical: https://answers.mindstick.com/qa/37010/is-buying-shares-for-dividends-even-worth-it  
category: "share market"  
reading_time: 1 minute  

---

# Is buying shares for dividends even worth it?

Is buying shares for dividends even worth it?

## Answers

### Answer by Shriyam Srivastava

**Dividends are a portion of the income that a company distributes among its shareholders when it earns profits.** The divided policy of a company is seen as a proof to its confidence in future growth and sustainability of the business. Thus, a good record of dividends value is a sign of reliability that the stock would give good returns in the future.

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Hence, investing in dividends of companies is a great way of generating income and stability of business in the future. **Profits are possible in two ways:** • ***stock price appreciation*** ***• Payouts made by the company*** ***\*** ***\***

## There are various ways in which it is justified to invest in dividends-

• holding dividends in companies which distribute regular dividends can yield higher profit in future. • Dividend stocks are less risky than non-dividend stocks • There is both the benefit of dividend income as well as capital appreciation. \


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