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What Is a Dividend?
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Investopedia defines a dividend as, “the distribution of reward from a portion of the company’s earnings and is paid to a class of its shareholders.” In short, you receive a dividend by owning stock in a company. If you own a stock that pays dividends, you will receive a portion of the company’s earnings for each individual share of the company you own. For example, if you own 100 shares in company XYZ, and they pay a dividend of $0.50 per share, then you will receive a total dividend payout of
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