Browsing: what is a dividend

• A dividend is a portion of a company’s profits that is distributed to stockholders.
• The dividend dates include cum dividend date, ex-dividend date, the record date, and the dividend payment date.
• Knowledge about how and when dividends get disbursed helps ensure investors make informed decisions.

Investing in stocks can offer investors a number of benefits, such as the potential for long-term capital appreciation, the ability to diversify their portfolios and the potential for dividend income. Capital appreciation is the increase in the value of an asset over time and stocks can generate long-term capital appreciation if held for the long term. Diversification is the practice of spreading investments across different asset classes or types of investments, which can help reduce overall portfolio volatility. Dividend income is generated when a company pays out a portion of its profits to shareholders, and can provide a steady stream of income to investors.

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