Dividend

A dividend is a payment that a company sends to its shareholders—basically, a slice of the company's profits shared with people who own stock in it. You'll see dividends mentioned when researching stocks because they're a way to earn money beyond hoping the stock price goes up. Not all companies pay dividends; some prefer to reinvest profits back into the business. When a company does pay one, it's usually a small amount per share, paid quarterly or annually. For example, if you own 100 shares of a company paying a $0.50 quarterly dividend, you'd receive $50 every three months. Dividends are especially popular with investors seeking steady income rather than just growth.