Dividend
Profit paid directly to shareholders
Definition
A dividend is a distribution of a portion of a company's earnings to its shareholders, typically paid on a per-share basis. Companies pay dividends as a way to reward investors for holding their stock. Dividends can be paid in cash, additional shares (stock dividends), or other property. Not all companies pay dividends — growth companies often reinvest earnings instead of distributing them.
Example
Apple pays a quarterly cash dividend of $0.24 per share. If you own 100 shares, you receive $24 every quarter, regardless of how the stock price moves.
Related Terms
Frequently Asked Question
What is a dividend?
A dividend is a cash or stock payment made by a company to its shareholders from its profits. It represents a direct return on your investment, separate from any stock price appreciation.
APA Citation
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· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.