Is Amazon a Great Dividend Stock?

There are a lot of great dividend-paying stocks out there, but I hate to break it to you -- Amazon (NASDAQ: AMZN) isn't one of them. But income-seeking investors shouldn't just dismiss the idea of investing in Amazon for that reason.

Instead, investors should understand why the company doesn't pay a dividend, what it does with its cash instead, how good those uses of cash really are, and whether there's room for Amazon in a largely dividend-paying portfolio of stocks.

Amazon has never paid a dividend since it went public in 1997. You might think of that as not being shareholder-friendly, but a company's decision to pay a dividend should come down to whether it has more productive alternative uses for its cash.

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Source Fool.com