Dividend
A dividend is a share of profit a company pays out in cash to the people who own its shares.
Mature companies that cannot usefully reinvest all their profit hand some back, typically four times a year. Fast-growing companies usually pay nothing and put every dollar back into growth — neither approach is better.
Yield is the annual dividend as a percentage of the share price. A very high yield is usually a warning: it often means the price has collapsed, and the payment is about to be cut.
In Stoxhatch
Dividends are not simulated — your returns here come from price movement only, which keeps the scoring about decisions.
Related
- Share — A share is one unit of ownership in a company, so owning a share makes you a part-owner of the business.
- Market capitalisation — Market cap is the share price multiplied by the number of shares — what the market thinks the whole company is worth.
Try it with $10,000 of simulated cash, no signup needed — or browse the rest of the glossary.