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.



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.

Investment advisory services offered through Finhabits Advisors LLC, an SEC registered investment adviser. Registration does not imply a certain level of skill or training. Past performance is no guarantee of future results or returns. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in loss. All information herein as well as any communications on social media is not an offer, solicitation of an offer, or advice to buy or sell securities or services. Securities offered through Apex Clearing Corporation, Member FINRA, SIPC. Securities in your account are protected up to $500,000. See SIPC.org for more details. By using this website, you hereby consent to our Terms of Use and Privacy Policy. A person shall only become a client of Finhabits when he or she has signed the advisory agreement and acknowledged receiving all disclosures from Finhabits. Exchange Traded Funds are provided by Vanguard and iShares, registered trademarks of The Vanguard Group Inc. and BlackRock Inc.

Insurance services offered through Finhabits Insurance Services LLC, a licensed producer in the following states: California (license 6001946), Florida (license L109638), Georgia (license 217713), Illinois (license 3001250376), and Texas (license 2510873). All information herein as well as any communication on social media is neither an offer to sell insurance nor an advertisement of insurance in any place except the states California, Florida, Georgia, Illinois and Texas. Finhabits Advisors LLC is not a fiduciary to insurance products or services.