Glossary
What is Dividend?
A dividend is a thank you payment some companies send to the people who own their stock.
The simple explanation
When a company makes more cash than it needs, it may share part of it with shareholders. Dividends are usually paid every quarter. Not every company pays one, and a company can raise, cut or stop its dividend.
An example
If a company pays 1 dollar per share each year and you own 100 shares, you receive 100 dollars a year.
Why it matters
Dividends are a way to earn money from a stock without selling it.
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Educational information, not financial advice.