Investing Dictionary
Basics

What is Dividend?

Cash a company pays you just for owning their stock

Full Explanation

Some companies share their profits with shareholders by paying dividends — usually every 3 months. You don't have to do anything to receive them.

Real-World Example

Own 100 shares of Coca-Cola paying $0.46/share = $46 every quarter.

Pro Tip

Not all stocks pay dividends. Growth companies usually don't.

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