Definition
A share of a company's profit paid out to its shareholders.
The story
Some companies send part of their profit back to owners, often every quarter, like a thank-you check. Others keep it all to grow. Dividends are one reason index futures and the index itself trade at slightly different prices.
Why markets watch it
Dividend changes signal how confident a company is.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms