Lux Investing

What is Dividend in investing?

I have stock in Great Plains Energy (GXP), and it just approved of a quarterly dividend of $0.2075. Can anyone define dividend for me?

Public Comments

1. It is your share of the companies earnings. Many company's pay a portion of their earnings to you - the stock holder (the owner of the company). They probably have a dividend reinvestment program, where your dividend can be reinvested in more stock of the company with no additional fees. A great way to build wealth. I hope this helps you
2. Many investors choose stocks that have a long history of paying ever increasing dividends. Always make sure their earnings are at least twice the amount of the dividend. Be especially alert if interest rates increase because companies like Great Plains Energy (GXP) borrow billions.
3. A dividend is the distribution of gains to shareholders. GXP made x amount of money and they are giving their share holders a quarterly profit of $0.2075 per unit. The more units you have, the greater your portion of dividend. Dividends can be reinvested (default) whereby the money is used to buy additional units of the said asset or it can be settled to cash, where it'll pool in your investment account.
4. A dividend is payment made to a shareholder for the ownership of stock. These payments are usually made every quarter.