What is a dividend, and how is it paid?
Market Basics
A dividend is a portion of a company’s profit distributed to shareholders, usually declared per share and paid directly into your linked bank account.
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Companies aren’t obligated to pay dividends — the decision depends on profitability and board discretion. Once declared, dividends are paid to all shareholders holding the stock as of the record date, credited electronically within a few weeks, with no action required from investors.
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