Plain-English definitions, reviewed by an independent investor
Dividend
A dividend is a portion of a company’s profit paid out to shareholders, usually in cash per share.
A dividend is a portion of a company’s profit paid out to shareholders, usually in cash per share.
(Set by the board; paid per share held)
Why it matters
It is the tangible reward for owning profitable companies.
Common confusion
A cut dividend often signals trouble; a rising one signals confidence — but not always.
Frequently Asked Questions
Are dividends guaranteed?
No. The board can raise, cut, or skip them at any time.
Dividend vs share price?
Price can fall while the dividend stays; total return combines both.