A dividend is a share of profits paid to shareholders. Some investors rely on them for income; others prefer companies that reinvest everything in growth.
Why companies pay dividends
Mature businesses with steady cash flow and fewer growth opportunities often return cash to shareholders.
Yield is not everything
A very high yield can signal that the market doubts the dividend is sustainable.
Balancing income and growth
Many investors combine reliable dividend payers with growth companies to balance present income and future gains.
Key takeaways
- Why companies pay dividends
- Yield is not everything
- Balancing income and growth
