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What is a dividend?

Updated: Jun 27

When a company is doing well financially, sometimes they will pay our some of their earnings to their shareholders in what is called a Dividend.


Dividends are awesome! They are a perfect example of putting your money to work. This image is from an email I got from Cash App. For fun, I invested $5 in an S&P500 tracking ETF earlier this year, and now, just for owning it, they paid me a $.02 dividend.


Of course, that may not sound like a lot. But I didn’t have to do anything to get this money, except buy and hold! and with the magic of compounding and reinvesting, this can be a powerful engine for growth over the long term. That’s just my 2 cents :)

Have you ever received a dividend? Let me know in the comments!


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