Q. What is a dividend?
A dividend is a payment to a shareholder when a company shares its profits. When a business makes a profit, they can choose to pay dividends to shareholders. If you own shares, you get a certain amount of the profit. These payments to shareholders that come out of the profits are dividends.…
Q. What is dividend yield?
A dividend is a payment made to a company’s shareholders. It’s typically paid out as a way to share a company’s earnings. The dividend yield is that amount being paid to the shareholder written as a percentage of the stock price.…
Q. Where do dividends come from?
When companies generate revenue, all the money that’s left after accounting for the cost of business is the net profit, or net income. Shareholders (who are usually represented by a board of directors) choose what to do with that money. Usually,…
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