dividends

Dividends are payments made by a corporation to its shareholders, representing a portion of the company’s profits. When a company earns money, it can reinvest it into the business or share it with its investors. Dividends are typically paid out regularly, such as quarterly, and can be in cash or additional shares. They provide a way for shareholders to earn a return on their investment, even if the stock price doesn’t increase. Companies that pay dividends are often seen as financially stable, as they generate enough profit to reward their investors while still operating effectively.