The basics

Dividend

A dividend is a share of a company's profits paid to its shareholders, usually in cash.

A dividend rewards shareholders when the company is profitable. Not all companies pay one: some reinvest everything into growth instead. The amount is set by the board and expressed per share.

Example

A company pays a $0.50 dividend per share. If you hold 200 shares, you receive $100.

Related terms

Ready to put it into practice?

Understanding a term is good. Applying it on a real platform with a clear method is better. That is exactly what we do in 5 days.

← All terms