Investing in Stocks
What is a dividend?
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A dividend is a distribution of part of a company's profits to its shareholders; types include cash dividends paid in cash and stock dividends paid in new shares.
Dividends are received in proportion to the number of shares held, and they are a distribution of after-tax profit to shareholders, not a company expense. There is no guarantee that dividends will continue to be paid.
This answer is general financial information as of 14.10.2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.
