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.
- Dividend StockShares of a company that regularly pays out part of its profits, often favored by income-focused investors.
- Earnings Per ShareA company's profit divided by its number of shares, showing how much it earns for each share owned.
- Ex-Dividend DateThe cutoff day for owning a stock to receive its next dividend; buyers after this date miss that payment.
- 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.