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.
- YieldThe income an investment pays you each year, shown as a percentage of its current price.
- Dividend StockShares of a company that regularly pays out part of its profits, often favored by income-focused investors.
- Payout RatioThe share of a company's earnings paid out as dividends, hinting at how sustainable those payments are.
- Current YieldA bond's annual interest payment divided by its current market price, showing income relative to today's cost.
- Total ReturnThe full gain on an investment, combining price changes with any dividends or interest it paid.
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Plain-English education — not personalized legal, tax, or investment advice.