Glossary
Definition
Dividend
A portion of a company's earnings distributed to shareholders.
A dividend is a distribution of a portion of a company's earnings to its shareholders. Dividends are typically paid quarterly as cash but can also be paid as additional shares (stock dividends). Not all companies pay dividends — growth companies (like many tech firms) prefer to reinvest earnings.
Frequently Asked Questions
Do all billionaires receive dividends?
Only those who hold stocks in dividend-paying companies. Many tech billionaires hold stakes in companies that pay no dividend, preferring share buybacks instead.