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  1. Home
  2. /Glossary
  3. /Dividend
Back to Glossary
traditional-finance

Dividend

A portion of a company's profits distributed to shareholders.

Definition

A portion of a company's profits distributed to shareholders. Not all companies pay dividends, as some prefer to reinvest earnings. Dividend stocks are popular with income-focused investors who want regular cash flow.

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Related Terms

Stocks

Shares representing partial ownership in a company.

Yield

The income earned on an investment, expressed as a percentage.

Accredited Investor

Someone who meets specific income or net worth thresholds set by regulators, qualifying them for investments not available to the general public.

Anti-Money Laundering (AML)

Laws and procedures designed to prevent criminals from disguising illegal funds as legitimate income.

Asset Allocation

How you divide your investments across different asset classes like stocks, bonds, crypto, and cash.

Blue Chip

A well-established, financially sound company or crypto project with a proven track record.

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