Glossary
Dividend
A share of a company's profit paid out to shareholders
A dividend is a portion of a company's profit paid out to its shareholders. Hold the stock, and on set dates you receive a dividend based on how many shares you own.
Not every company pays one. Many pay little or nothing, reinvesting in growth instead. The annual dividend divided by the share price is the dividend yield, but choosing on that number alone is a trap, so check the company's earnings too.