Dividends are payments a company makes to share profits with its stockholders. They're paid on a regular basis, and they are one of the ways investors earn a return from investing in stock. A dividend is paid per share of stock, if you own 30 shares in a company and that company pays Rs.10 in annual cash dividends, you will receive Rs.300 per year.

But not all stocks pay dividends, if you are interested in investing for dividends, you will want to specifically choose dividend stocks.