Dividend
InvestingA portion of a company's earnings distributed to shareholders, usually as cash or additional shares.
Example
Example: You own 500 shares of a stock trading at $60/share ($30,000 invested). It pays a $2.40 annual dividend per share — a 4% yield. You receive $1,200/year in dividends ($300/quarter). If you reinvest those dividends to buy more shares, after 20 years at 8% total return, your $30,000 grows to approximately $140,000.