What is a dividend?


What is a dividend?

The 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


Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
1 Year CD 0.97%  0.01 0.96%
2 Year CD 1.18%  0.01 1.19%
5 Year CD 1.67% --0.00 1.67%
View Rates in your areaSearch

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

Move money to retirement account?

Dear Liz, Can I convert my regular investment account to a retirement account so that an investment made in that account is not taxed? If so, what type of retirement account can I choose? -- Jennifer Dear Jennifer, It's... Read more



Jean Chatzky

Jean Chatzky: Learn to love stocks

These four steps can help get you started in the market slowly, but smartly.  ... Read more

Partner Center

Connect with us