General Investing
  -General information about
  getting started.
Stocks
  -How investing in the stock
  market works
Bonds
  -How bond investing works
Mutual Funds
  -How mutual funds work
Economics
  -A basic intro to the economy
Advanced Investing Topics
  -This section covers topics
   like futures and options

Dividend - Definition
Below, you'll find a definition of this investing term...

Definition: A dividend is a share of a company's profits that it pays to investors.  Not all companies pay dividends; a number of companies decide to retain their earnings and reinvest them into the company.

TeenAnalyst Advice: Many people believe that the majority of investment profits are made from dividends.  That's not true.  The majority are made through capital gains.

However, steady dividends can provide investors with a good source of income.  Also, companies that pay dividends provide a little extra "cushion" during market downturns.

 

Related Sections on Our Website

Investing - Learn more about investing basics and strategies.

Stocks - Learn about investing in the stock market.

 

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