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Dividend stocks are profits earned by an organization and paid every quarter to investors in the form of additional stocks rather than in the form of cash payouts.

There are three main types of dividend stocks depends on the returns they yield and these include low-yielding stocks, medium-yielding stocks, and high-yielding stocks.

Yes, returns earned from dividend stocks are taxable and individuals have to pay taxes based on their income tax rate on all the income they earn from dividend stocks.

Depending on the performance of the company and the profits earned, the board of directors of an organization decide the percentage of profits to be paid out as dividend stocks to investors.

Financial news websites, financial news apps, brokerage accounts, and stock exchanges are good places to know about dividend stocks that are doing well and giving profitable returns.

To find the top dividend stocks in the market, look at the history of the company, check the cash flow and earnings, and diversify by investing in exchange-traded funds.