why are dividends important 
dividends signal that a company has stable cash flow and is generating profits they also provide investors with recurring income dividend payouts may also help provide insight into a company s intrinsic value many countries also offer preferential tax treatment to dividends treating them as tax free income 1516the bottom linedividends are seen by many investors as a sign that a company is earning a healthy profit and more to the point is willing to share it with its investors not all companies pay dividends and not all investors care about them if you do look for the best dividend paying stocks for your money 