Dividend
A portion of profit a company may decide to pay to shareholders.
Definition
A portion of profit a company may decide to pay to shareholders.
Why this concept matters
It is a potential source of income and can be reinvested.
What to watch
It may be reduced or cancelled, and does not necessarily offset a fall in the share price.
Simple example
A €2 dividend per share produces €20 gross for 10 shares.
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