Everything You Need to Know About Dividends (The Short Version)

Different investors have varying goals for their portfolio. For some, high-growth stocks that have the potential for explosive share-price gains are critical to help them earn as high a return as possible. Yet what many investors find -- especially later in life -- is that they also need to draw current income from their investments.

Dividend stocksare a great way for this second group of investors to meet their needs, because they offer both cash payments right now as well as the chance to see their share prices go up in the future. Here's everything you need to know about dividends.