What are Dividends?
Dividends are regular payments made by companies to their shareholders from their earnings. These payments represent a share of the company's profits and are typically distributed quarterly in the United States.
Types of Dividends
- Cash Dividends: The most common type, paid in cash directly to shareholders
- Stock Dividends: Additional shares of stock instead of cash
- Special Dividends: One-time payments outside the regular dividend schedule
Key Dividend Metrics
Understanding these key metrics helps investors make informed decisions:
- Dividend Yield: Annual dividend payment / Current stock price
- Payout Ratio: Total dividend payments / Net income
- Dividend Growth Rate: Rate at which dividend payments increase over time
Coming Soon
We're currently working on expanding this guide with more detailed information about:
- Dividend Investment Strategies
- Tax Implications of Dividends
- Analyzing Dividend Stocks
- Building a Dividend Portfolio