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In this video we discuss what a dividend is. Dividend is a payment made by companies to shareholders as a distribution of the profit and cash flows. Dividend income has a number of benefits as explained in the video. 

These include: 
A regular income or cash flow 
Increasing confidence in the company’s stability 
Reduction of overall portfolio risk 

A lot of Indian companies pay dividends on a regular basis. An investor can also invest in these dividend paying companies through Dividend Yield Funds. Such funds are a more tax-effective method to earn a regular income from dividends.