Dividends are a portion of profits that a company distributes to shareholders. Dividends are paid along with any earnings from the value of the company's stock; considered as a “reward” to shareholders for holding shares.
Companies in certain sectors have a reputation for paying dividends. This is also more common in established companies; because they don't need to reinvest all of their profits back into the business. Companies can pay special dividends in a lump sum; or pay in installments, like every quarter or year.
Regular dividend payments are a big advantage of popular stocks; though common stock can do the same thing. But unlike bond interest payments; Dividend payment is not guaranteed. Companies can cut or even stop paying dividends when going through tough economic times.