The basics
Dividend
A payment of a company's profits to its shareholders, usually so much per share.
A plain-English explanation, not financial or tax advice. Rules and rates change, so check your own situation. For free, impartial guidance, try MoneyHelper. Disclaimer.
You'll hear it as
The company paid a dividend of 10p a share.
Why it matters to you.
Startups almost never pay dividends: profits, if any, go back into growth. Equity in a startup pays out on an exit, if at all.
Related terms.
Videos.
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