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