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.
- Dividend YieldA stock's yearly dividend divided by its share price, showing how much income you get relative to price.
- Blue-Chip StockShares of large, well-established companies with a long track record of stable performance and reliability.
- Dividend ReinvestmentAutomatically using the dividends you receive to buy more shares instead of taking the cash.
- Payout RatioThe share of a company's earnings paid out as dividends, hinting at how sustainable those payments are.
- Value StockShares that appear priced below what the company seems worth, which some investors buy hoping for a rebound.
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Plain-English education — not personalized legal, tax, or investment advice.