What we learned over coffee with a Dividend

He may sound a bit confusing, but word on the street is that Dividend is actually a pretty generous guy. We wanted to set the record straight, so we invited him for coffee and got to know him a whole lot better.

Dividend, it’s wonderful to meet you in person. Please, tell us about yourself.

Shareholders always welcome me with open arms. That’s because when I arrive, it means they are receiving a cash distribution from an investment. Pretty awesome, right?

Seriously awesome, but how does it work?

Let me explain. When a company keeps sales strong and its profits are rolling in, they start paying dividends to their shareholders. In other words, they distribute dividends to the people who own their stock.

What’s an investor supposed to do with you once you show up?

Some investors are tempted to spend me at the shopping mall, but I prefer to be reinvested. That’s when I get to hang out with my pal, Compound Interest. Oh, you gotta meet her!

Fun fact?

My favorite quote is, “The most powerful force in the world is compound interest.” – Albert Einstein.


Disclaimer: This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this post are derived from proprietary and nonproprietary sources deemed by Finhabits to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Finhabits, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this post is at the sole discretion of the reader.
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