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Dividend definition

Dividends represent yield and the higher the rate, the more a stock behaves like a bond, up to a point.

Beginner

Dividend is a recurring payment from a company in the form of cash paid directly to the shareholder's brokerage account. In most cases, dividends occur quarterly but in some cases companies pay annually. There are two types of dividends: regular and special. Regular dividends are consistent and are rarely modified except for small annual increases as set by the Board of Directors. Special dividends are infrequent (ie, less than 1% of companies annually) and occur when a company has extra cash. Some pricing services may record a spin-off as a special dividend.


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Quiz

Click box for answer.

Two sectors offering diversification include healthcare and industrials because of their high correlation. | True or False?

False. The first part is true, the second is false

In a Sentence

Guy:  How do you measure diversification  when executing your daily trade lists?
Rex:  By instinct. How much did you spend at lunch today Guy? $6.73 or $6.74?

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Keywords:
dividend
cash dividend
special dividend
regular dividend
stocks
investment
payment
yield
payout