Definition: Dividend - Examples & Advice | Bolder Money

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Definition

A portion of a company’s earnings paid to shareholders, usually on a regular basis. It’s one way to earn passive income from stocks.

What to consider

Consider reinvesting dividends to boost your long-term growth.
They’re a bonus return on top of stock price gains.
Review the consistency of a company’s dividend payments.

Real world scenarios

Carl eagerly awaits quarterly dividends from a major utilities stock, using the extra cash to pay down his credit card balance.
Martina invests in a well-known dividend-paying company, enjoying a predictable stream of earnings on top of potential share price growth.
Reinvesting dividends through a brokerage app lets Isabel accumulate more shares automatically, expanding her investment without extra effort.

Related terms

Investments & Retirement

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