dividend income

Stock ownership payments

Dividend income is money received from owning shares in a company that distributes part of its profits to shareholders.

Unlike capital gains from selling stock, dividend income arrives periodically—typically quarterly—as passive earnings: Her portfolio generates enough dividend income to cover living expenses.

For tax purposes, dividend income is often distinguished from wages and interest.

Opposites
income source type

dividend incomecapital gains

Profit from asset sales

wage income · earned income · appreciation · interest income · salary

active vs. passive earning

dividend incomeearned income

Pay from work

wages · salary · employment income · freelance income · hourly wages

cash flow direction

dividend incomecapital loss

Selling asset below purchase price

investment loss · stock purchase · management fees · equity investment · dividend payment

Family

income, dividend

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Abstract · Rated G