Dividends and Corporate Actions
Dividend
A payment a company may make to shareholders, usually from profits or retained earnings.
Also called: cash dividend
What it means
A dividend is money paid by a company to its shareholders. Companies may pay dividends regularly, such as quarterly, or at special times. Not all companies pay dividends, and a dividend is never guaranteed just because it was paid in the past.
Why it matters
Many investors care about dividends for income or total return, but it is important to understand that dividend-paying stocks can still lose value.