Dividends Explained
A 1-minute lesson from the MarketPro academy, one of 18 in stock market basics.
A dividend is a portion of a company's profit that is distributed to shareholders, typically in cash, as a reward for holding the stock. Not all companies pay dividends—many, especially younger or fast-growing ones, reinvest profits back into the business instead.
A dividend is a portion of a company's profit that is distributed to shareholders, typically in cash, as a reward for holding the stock. Not all companies pay dividends—many, especially younger or fast-growing ones, reinvest profits back into the business instead.
How Dividends Work
- Declaration date: the company's board announces the dividend and its amount.
- Ex-dividend date: the cutoff date; buying shares on or after this date typically means you will not receive the upcoming dividend.
- Payment date: the date the dividend is actually deposited to eligible shareholders.
Finish this lesson in the MarketPro app
2 more sections of Dividends Explained, plus all 320 lessons, the quizzes that check each one landed, and the streak that keeps you coming back. All of it is free on any account, including a free one. There is no paywall inside the academy.
Scan with your phone camera to install MarketPro and open this lesson.
Free account, no card. The academy has no paywall inside the app.
Not investment advice. Past performance is not indicative of future results.
Step 4 of 10 on Stocks & Indices Basics
Run the numbers while this is fresh
The arithmetic in this category has a free calculator on this site, no sign-up and nothing leaves your browser: Profit & loss calculator, Compounding calculator.
The whole academy is free in the app
All 320 lessons, 12 guided paths, quizzes and a daily streak. Free on every account, with vetted free signals alongside it.
Not investment advice. Past performance is not indicative of future results.