Dividend
A distribution of a company’s profits to its shareholders.
Detailed Description
Dividend
What are cash dividends?
Cash dividends are payments made directly to shareholders in cash, typically deposited into their brokerage accounts.
What is the ex-dividend date?
The ex-dividend date is the cutoff date that determines which shareholders are eligible to receive the next dividend payment.
How is the dividend yield calculated?
Dividend yield is calculated by dividing the annual dividend payment by the current share price, expressed as a percentage.
What does a high dividend payout ratio indicate?
A high dividend payout ratio may suggest that a company is returning most of its earnings to shareholders, potentially at the expense of future growth.
What are Dividend Reinvestment Plans (DRIPs)?
DRIPs allow shareholders to automatically reinvest their dividends into additional shares of stock instead of receiving cash payments.