Some companies share a portion of their earnings to shareholders either in the form of money or shares (especially during stock split events). These distributions are called dividends and you're paid simply for owning the stock. These stocks are called dividend stocks or dividend-paying-stocks.
Hi! As Advisor Fomichenko writes, a dividend is cash paid regularly to its shareholders by a company out of its profits or reserves. When you own stock in a company that pays dividends, you receive a cash payment each time dividends are distributed, which for most companies is quarterly. The company sets a rate per share of how much they will pay.
Here is an example that may help clarify: in 2017, PNC Bank pays an annual dividend of $2.04 or (51 cents per quarter) for each share you own. That means if you owned 100 shares of PNC, you would be paid $51.00 that quarter (51 cents times 100 shares). You would continue to receive that cash payment each quarter for as long as you owned the shares and as long as PNC chose to continue to pay that dividend. Including dividend.com, there are many websites that list which company stocks pay dividends, what the dividend amount is, and how often the dividend is paid. Best wishes to you and thanks for writing!
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