What is Dividend?
Updated October 22, 2026
A dividend is a share of company profits paid out to shareholders.
Some companies pay dividends every quarter to people who own their stock.
Dividend investing is a classic passive income approach.
Dividends can be cut in bad times, so they're not promised.
Example
You own 100 shares and get a $0.50 dividend per share, so you're paid $50.
Questions people ask
Do all stocks pay dividends?
No, many growth companies don't.
Should I reinvest dividends?
Reinvesting helps compounding over time.
Related
Fresh from the site
- Three outside up (quick story)
- You don t need years of charting to catch bearish reversals (quick story)
- Bullish harami (quick story)
Rather have AI trade for you?Get the free guide on hands free AI trading accounts.
Send me the free guide →
Work out your own number with the quit your job calculator, or take the passive income quiz.