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FINANCIAL GLOSSARY

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.

Example currency : United Kingdom (GBP). The reference country controls the example currency.

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