Dividend-paying stocks provide shareholders with cash payments, which can be used for spending, saving, or reinvestment, as companies distribute profits to investors.
"some companies in the stock market pay out a dividend it is a cash payment that they're giving you for doing nothing except owning the stock so have some companies that make these big profits billions of dollars of profits and then they can either take this money and save it in the bank account for an emergency or they can take this money and reinvest it back into the company by opening new stores hiring more people building more infrastructures and more things like that or if they don't have a good use for this money they can just give it away and who do they give it away to they give it away to the shareholders their investors the people that own stock in these companies and they literally give you a check I mean it's not a physical check they deposit this money into your bank account but you can use this money to spend you can save this money or you can reinvest this money back into the company"
