What are dividends and how do they work?

What are dividends and how do they work?

Dividends are payments made by a corporation to its shareholders, usually from profits. They can be in cash or additional shares.

How often are dividends paid?

Dividends are typically paid quarterly, but some companies may pay annually or semi-annually.

What is the difference between cash dividends and stock dividends?

Cash dividends are paid in cash, while stock dividends are paid in additional shares of stock, increasing the number of shares you own.

Are dividends guaranteed?

No, dividends are not guaranteed. Companies can choose to cut or eliminate dividends based on their financial situation.

How can I find out which companies pay dividends?

You can find dividend-paying companies by checking financial news websites, stock market apps, or using stock screeners.