Dividend Income

Dividend income is the money a company pays to its shareholders from its profits. When you own shares of a company's stock, you may receive dividend payments, typically on a quarterly basis. These payments are a way for companies to share their earnings with investors. Dividend income can be a steady source of cash flow and often reflects the company's financial health and profitability. It’s different from selling stocks for a profit; dividends are ongoing payments based on your ownership stake. Investors often seek dividends for income, especially during retirement or for steady cash flow.