What is Dividend?
A share of a company's profits paid out to shareholders.
A dividend is a slice of profit a company pays directly to its shareholders, usually quarterly. Own dividend-paying stock and you get paid just for holding it.
Mature, profitable companies tend to pay dividends; fast-growing ones usually reinvest every dollar into growth instead. Neither is 'better' — it depends on the company's stage.
$BUSINESS does not pay dividends. $BUSINESS pays vibes. Please plan accordingly.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.