What does dividend mean in the stock market

Dividend

The yield is simply the amount the company pays each year, divided by its share price. While dividends are great, the level of dividends different companies pay is vastly different. The dividend yields companies pay vary over time and market conditions.

So a company paying a big dividend yield might be returning more money to shareholders than it profits in a year.

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That can only last so long. So while companies paying large dividends might be attractive, you need to be able to assess how sustainable those dividends will be over time. Click the link to get details about the key dates when it comes to dividends.

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Answers Podcast Customer Service. Home General Investing What are dividends and how do they work? What are dividends and how do they work?

Not a bad deal! What kind of dividends should you expect?

Dividend - Wikipedia

Unfortunately, dividend payouts are much more complicated. Yet, the problem with high-payout stocks is that their dividends are often unsustainable. And generally, when companies cut their dividend, the market does not greet the news positively… So while companies paying large dividends might be attractive, you need to be able to assess how sustainable those dividends will be over time.

Other dividend considerations There are a couple of things that you, the investor, need to be aware of concerning dividends. Dividends are generally paid quarterly. There are exceptions like annual dividends and one-time special dividends.

Yet, for the most part, companies try setting a rate that pays you once every quarter.