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The different types of investors

Dividend Paying Stocks

Dividend Paying Stocks

A dividend is money that a stock pays its shareholders for owning the stock. The stock shares the profits with its owners. When you own shares of a stock, you become one of their business owners and you own part of that company. Because you own part of the company, you also entitled to the profits that the company makes if the company pays dividends. The profit from the company gets divided and distributed among all the shareholders. The word dividend comes from the divided.