Business English Vocabulary Podcast 005 – Dividends

Dividend – Certain stocks pay what is called a “dividend” to their investors. Each company can decide whether or not they want to pay a dividend to their shareholders or to re-invest the money back into the company to grow it more. Many large companies that earn a lot of money pay a dividend to their investors. A lot of small but growing companies do not pay dividends. Sometimes dividends are paid each month and sometimes they are paid every 3 months. If you own a dividend paying stock, the money will just go automatically into your bank account every time they pay the dividend.

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