Dividend

A dividend is money a company pays to its shareholders. In simple terms, it is a way for a company to share part of its profits with investors. Dividends are important because they can provide investors with regular income, even if the stock price does not rise. Some companies pay dividends every quarter, while others may not pay dividends at all. For example, if you own 10 shares of a company and it pays a $2 dividend per share, you receive $20 in dividends. A dividend is not guaranteed. A company can reduce, suspend, or stop paying dividends if its profits fall or if it decides to use the money for other purposes.