what is a dividend?a simple explanation + 4 tips 

Generally speaking, a dividend is a distribution of a portion of a company’s earnings paid to the shareholders. Dividends can provide income and growth for long-term investments.

What is a Dividend?

The simple answer is to attract more investors. By paying a dividend, they attract investors creating more demand for their stock.

Why Companies Pay Dividends

Many companies won’t pay dividends for several reasons, the biggest being it hurts their bottom line. Usually, companies just starting up, are more mindful of their cash flow.

Why Companies Don’t Pay Dividends

Earning a dividend is an easy feat to accomplish. The company will automatically pay to your brokerage account at distribution time by buying a stock or mutual fund that pays out dividends.

How Do You Earn A Dividend?

In most cases, companies pay dividends four times a year every quarter. However, companies can decide to pay out dividends at different intervals if they like.

When Do Companies Payout