dividend stock
Payout-generating share
A dividend stock is a share in a company that regularly distributes a portion of its profits to shareholders.
Investors seeking steady income rather than aggressive growth often favor dividend stocks: She built her retirement portfolio around dividend stocks for reliable quarterly payments.
The term distinguishes these from growth stocks, which reinvest profits rather than paying them out.
- yieldProduce or relinquish
- incomeRegular monetary receipts
- passive incomeMoney earned without labor
- income streamOngoing source of earnings
- quarterlyFour times annually
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