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Money Glossary
Investing & Retirement

Dividend

Also called: dividends

Money some companies pay to people who own their stock, often every few months. It is a share of the profit.

Example

You own stock in a soda company, and it sends you a small dividend each season.

Why it matters

You can use dividends to buy more shares and grow your money faster.

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For learning, not personal financial, tax or legal advice. Rules and limits can change each year, so check official sources (like IRS.gov or your plan's documents) or a trusted pro before big decisions.