Dividend
A portion of a company's profits paid to shareholders, typically every quarter. Not all companies pay them — many growth companies reinvest profits instead. When reinvested automatically, dividends quietly accelerate compounding.
A stock paying a $2 annual dividend on a $100 share has a 2% dividend yield.
Dividend
This term appears in a longer lesson, where the idea gets the proper treatment with examples and a working visualization.
Read the lesson →What you own
Stock
A share of ownership in a company. You profit if the company grows; you lose if it falters.
Read →Bond
A loan you make to a government or company. They pay you interest, then return your money.
Read →ETF
A basket of many investments — often hundreds — bought in a single transaction.
Read →Index
A representative basket of a market — like the S&P 500 or the IBEX 35.
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