What is a Dividend?

A dividend is the distribution of a company's earnings to its shareholders and is determined by the company's board of directors.

Dividends are often distributed quarterly and may be paid out as cash or in the form of reinvestment in additional stock.

This is money paid to you, and you can decide to use it however you want, or reinvest it back into the stock to buy more shares.

Just note that you have to own the stock on the “Record date” in order to review that quarters dividend.

Not all stocks pay dividends, and they are not guaranteed because they depend on the success of the company.

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