Dividend
A share of a company's profits paid out to shareholders, usually quarterly.
A dividend is a payment a company makes to its shareholders out of profits, typically each quarter. Not all companies pay them — many growth companies reinvest profits instead — but dividends are a meaningful source of return for many stock and fund investors.
Qualified dividends are taxed at the favorable long-term capital-gains rates, while ordinary dividends are taxed as regular income. In taxable accounts, dividends are taxed in the year received whether or not you reinvest them, which is a consideration for tax-efficient placement of investments.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.