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A dividend is a distribution of a company's earnings to shareholders. Dividends are typically paid quarterly and represent a share of profits.
Companies can pay dividends in cash or additional shares (stock dividends). Not all companies pay dividends—growth companies often reinvest profits instead.
Dividend-paying stocks are popular with income investors. However, dividends are typically taxable, even if reinvested.
Understanding dividend helps you make better investment decisions and plan for taxes. Use our dividend calculator to see how it applies to your situation.
