investing

What is a dividend?

 

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.

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