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
- DividendA portion of a company's profits paid out to shareholders, usually as cash on a regular schedule.
- CompoundingWhen your investment earnings themselves start earning returns, causing your money to grow faster over time.
- DRIP (Dividend Reinvestment Plan)A program that automatically reinvests your dividends into more shares, often without trading fees.
- Total ReturnThe full gain on an investment, combining price changes with any dividends or interest it paid.
- Dividend StockShares of a company that regularly pays out part of its profits, often favored by income-focused investors.
- ShareA single unit of ownership in a company; owning shares means you own a piece of that business.
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Plain-English education — not personalized legal, tax, or investment advice.