Definition

Dividends are payments that companies give to their shareholders, usually from their profits. Think of it as a "thank you" for investing in the company! These payments can be made in cash or additional shares of stock and are typically paid quarterly.

Analogy

Imagine you own a fruit tree 🍎. Every season, the tree produces fruit, and you get to enjoy some without cutting the tree down. Similarly, dividend stocks pay you regularly while your investment remains intact!

Little-Known Fact

Did you know that some companies have been paying dividends for over 100 years? 💯

Coca-Cola, Procter & Gamble, and Johnson & Johnson have all consistently rewarded shareholders for decades!

Quick Quiz

Which of these companies is famous for its dividend payments? (Answer in tomorrow’s edition!)
a) 📱 Apple
b) 🚗 Tesla
c) 🍔 McDonald’s