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Dividend
Explanation:
A portion of a company's earnings that is distributed to its shareholders at the discretion of the board of directors. Dividends may be paid in the form of cash, stock, or property and are typically paid on a quarterly basis.
Our Thoughts:
The likelihood that you, as an investor, will be paid dividends depends on the type of investment you make and the type of company you invest in. Stable companies often pay regular dividends, yet the price of their stock may not fluctuate much. Rapidly growing companies typically do not pay dividends, as their earnings are usually reinvested into the company. Mutual funds pay dividends that comprise the total interest and dividends paid by the collection of investments they're comprised of.