Dividend

Dictionary Says

Definition of 'Dividend'

1. A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (dividends per share). It can also be quoted in terms of a percent of the current market price, referred to as dividend yield.

Also referred to as "Dividend Per Share (DPS)."

2. Mandatory distributions of income and realized capital gains made to mutual fund investors. 

Investopedia Says

Investopedia explains 'Dividend'

1. Dividends may be in the form of cash, stock or property. Most secure and stable companies offer dividends to their stockholders. Their share prices might not move much, but the dividend attempts to make up for this.

High-growth companies rarely offer dividends because all of their profits are reinvested to help sustain higher-than-average growth.

2. Mutual funds pay out interest and dividend income received from their portfolio holdings as dividends to fund shareholders. In addition, realized capital gains from the portfolio's trading activities are generally paid out (capital gains distribution) as a year-end dividend.

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Articles Of Interest

  1. Dividend Facts You May Not Know

    Discover the issues that complicate these payouts for investors.
  2. Due Diligence On Dividends

    Understanding dividends and how they work will help you become a more informed and successful investor.
  3. Why Dividends Matter

    Seven words that are music to investors' ears? "The dividend check is in the mail."
  4. The Power Of Dividend Growth

    Dividends may not seem exciting, but they can certainly be lucrative. Learn more here!
  5. Cash Flow Indicator Ratios: Dividend Payout Ratio

    See this section for a detailed explanation and calculation for the dividend payout ratio.
  6. Dissecting Declarations, Ex-Dividends And Record Dates

    Understanding the dates of the dividend payout process can be tricky. We clear up the confusion.
  7. How Dividends Work For Investors

    Find out how a company can put its profits directly into your hands.
  8. Your Dividend Payout: Can You Count On It?

    We go over several telling factors that can help you answer this question and avoid losses.
  9. Build A Dividend Portfolio That Grows With You

    Balance risk and return to produce adequate income despite inflation.
  10. If I sell my shares before the ex-dividend date will I still get the dividend?


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