Cash a company pays shareholders from its profits.
Dividend yield = annual dividends ÷ share price. Reinvested dividends have historically driven a large share of total stock returns — the case for DRIP investing.
Example: A $100,000 portfolio yielding 3.2% pays $3,200/year.
FAQ
What is Dividend in simple terms?
Dividend yield = annual dividends ÷ share price. Reinvested dividends have historically driven a large share of total stock returns — the case for DRIP investing.