Stocks

Dividend

A distribution a company may make to shareholders, often from earnings or reserves.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

A declared $0.50 dividend on 100 eligible shares produces $50 before taxes; future payments are not guaranteed.

IMPORTANT DISTINCTION

A declared payment and a sustainable future payment are different facts. Consider the ex-date and company assets transferred.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — investing glossary

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