A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- StockA share of ownership in a company that you can buy and sell, giving you a small stake in its profits and growth.
- Dividend YieldA stock's yearly dividend divided by its share price, showing how much income you get relative to price.
- Dividend ReinvestmentAutomatically using the dividends you receive to buy more shares instead of taking the cash.
- Ex-Dividend DateThe cutoff day for owning a stock to receive its next dividend; buyers after this date miss that payment.
- Payout RatioThe share of a company's earnings paid out as dividends, hinting at how sustainable those payments are.
- Dividend StockShares of a company that regularly pays out part of its profits, often favored by income-focused investors.
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Plain-English education — not personalized legal, tax, or investment advice.