What is dividend?

What is dividend?

One of the most important reason for investors to buy shares is the facts that you participate in the profit of the company. The profit paid out by the company is also called dividend, dividend can be either paid out in cash or in many cases, when facilitated by your broker, reinvested in stocks. Please note that it is important to always evaluate the how much of the company’s profit is paid out in dividend because it can also be seen as a sign of weakness.