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Glossary Finance

Dividend

A dividend is a payment a company makes to its shareholders out of its profits, usually every quarter.

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In more detail

The dividend yield is the yearly dividend divided by the share price: $2.40 on a $60 share is 4%. Reinvesting dividends buys more shares and compounds the return.

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Project dividend income, yield on cost and portfolio value over the years, with dividend growth.

See also

  • Glossary Bond
    A bond is a loan to a government or company that pays regular interest (the coupon) and returns the face value on a set maturity date.
  • Glossary Return on investment (ROI)
    Return on investment (ROI) is the gain or loss on an investment as a percentage of what was invested.
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