Glossary

A dividend is a payment made by a corporation to its shareholders, usually in the form of cash or additional shares of stock. 📥

Dividends are typically paid out of a company's profits and distributed on a regular basis, such as quarterly or annually. They provide shareholders with a source of income and are an important aspect of total returns for many investors.

For example, if a company pays an annual dividend of $2 per share and you own 100 shares, you'd receive $200 in dividends for the year.

Fun fact: Dividend-paying stocks are often referred to as "dividend aristocrats" 👑 if they've consistently increased their dividend payouts for 25 consecutive years or more. These companies are generally considered to be financially stable and attractive to income-seeking investors.