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The Daily Capital
INVESTING 101 · Lesson 39

What a dividend actually is

Daily Desk · Editorial5 min read
Some companies pay you just for holding their stock. That's a dividend — a slice of profit, deposited to your account.

You can make money from a stock two ways: the price goes up, or the company pays you while you hold it. That second one is the dividend — one of the most underrated forces in investing.

Educational, not financial advice.