What is a dividend?
The Bankrate.com financial term of the day is: "Dividend"
A dividend is what an investor receives when a corporation decides to share the wealth. The company pays out a portion of its profits to stockholders -- usually in cash but sometimes in other forms, such as with more stock.
A dividend is one of the possible perks of stock ownership -- a company's way of saying thank you to its investors.
To learn about the various types of investments, visit the Investments section at Bankrate.com.