💵 What Are Dividends & Dividend Yield?
Stock Literacy • Passive Income • Beginner Finance
Dividends are cash payments companies give to shareholders as a reward for owning their stock 💰. It’s one of the easiest ways to earn **passive income** while holding investments 📩.
What Are Dividends? 🧾
A dividend is a portion of a company’s profit shared with investors. Companies like KO, PG, and AAPL pay consistent dividends.
What Is Dividend Yield? 📊
Dividend Yield = Annual Dividend ÷ Stock Price
Example: If a stock pays $1 per year and the price is $20, the dividend yield is 5%.
Why Dividends Matter 🌱
- Steady income for long-term investors
- Signals financial strength 💪
- Offers “income + growth” strategy
Many wealthy investors love dividend stocks because they provide consistent cash flow and stability 📦.
Educational & informational only — not financial advice.
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