LESSON 2.1 · FOUNDATION

What a dividend actually is

Where the cash comes from, who decides it, and when it lands in your account.

DIVIDENDS4 MIN READ

When a company makes a profit it has two options: keep the money to grow, or hand some of it to the people who own the business. That handout is a dividend. Most established companies pay one every three months, in cash, straight into your account.

Two dates decide whether you get it. You have to own the share before the ex-dividend date to be on the list, and the money arrives on the payment date — often several weeks later.

Kept to grow the business65%
Paid to shareholders35%

A company splits its profit. The second slice is your dividend.

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Educational content only. It is not personal financial advice.