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.
- Record DateThe day a company checks its books to see who owns shares and is entitled to the upcoming dividend.
- 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.
- Dividend YieldA stock's yearly dividend divided by its share price, showing how much income you get relative to price.
- ShareA single unit of ownership in a company; owning shares means you own a piece of that business.
More in Investing
Plain-English education — not personalized legal, tax, or investment advice.