![]() ![]() What is a dividend?įirst, what is a dividend? A dividend is a portion of a company’s earnings paid out in cash (not to be confused with a stock dividend) to shareholders on a per-share basis. In other words, certain trees may put a seasonal cherry on top of your landscaping investment. And that’s a little like investing in a stock that pays dividends. And maybe you choose a tree that bears fruit to give you something extra in addition to that beauty and value. Let’s say you plant a tree in your yard to add beauty to your view and value to your home. Dividend risk comes in many forms, so know what to watch out for.A company’s dividend yield can indicate company strength or weakness depending on the circumstances.Some dividend stock investors hope for regular income, while some aim to benefit f rom “bonus” incentive payments in addition to growth.
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