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A share of profits paid to shareholders.
A dividend is a share of a company's profits paid to its shareholders, usually in cash every quarter. Not every company pays one: young, fast-growing companies often reinvest everything instead.
If a company pays $0.50 per share each quarter and you own 100 shares, you receive $200 a year.
Dividends provide income without selling shares, and reinvesting them has been a big part of long-term stock returns. A dividend can be cut if profits fall.
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