what is a good dividend yield 
a dividend paying stock generally pays 2 to 5 annually whether in cash or shares when you look at a stock listing online check the dividend yield line to determine what the company has been paying out the bottom linea stock dividend is a reward for shareholders made in additional shares instead of cash the stock dividend rewards shareholders without reducing the company s cash balance it has the adverse effect of diluting earnings per share at least temporarily stock dividends may signal financial instability or at least limited cash reserves for the investor stock dividends offer no immediate payoff but may increase in value over time of course the investor can simply sell the extra shares and collect the cash 