A dividend is money a company pays to its shareholders out of its profits, usually once or twice a year. Shareholders vote on it at the general meeting.
Not every company pays one. Some keep their profits to expand; others pay out most of what they earn. A company that paid a dividend last year is not obliged to pay one this year.
The “dividend yield” is the yearly dividend per share divided by the share price — a way of expressing the payout as a percentage.
Written by NUSANTARA as a general introduction. It explains a term; it is not advice about any security.
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