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NEWS AND MAGAZINE TEMPLATE
Dividend
Glossaries
| Term | Main definition |
|---|---|
| Dividend | The dividend is the income paid to investors holding an investment. With stock, the dividend is a portion of a company’s profits paid to its shareholders. For example, if a company has an annual dividend of $2 per share and you own 100 shares, your total dividend is $200. Usually, established and slower-growing companies pay dividends, while smaller and faster-growing companies reinvest their profits for growth. For assets held outside retirement accounts, dividends (except from tax-free money market and tax-free bond funds) are taxable.
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