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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. Author - Super User Hits - 81

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.

Author - Super User

Hits - 81