Q. What is a Dividend
Some stocks, especially blue chips, pay
dividends. This means that for every share you own, you are paid
a portion of the company's earnings. For example, for every
share of AT&T you own, you will get sent $0.15 every year. Most
companies pay dividends quarterly (four times a year), meaning
at the end of every business quarter, the company will send a
check for 1/4 of $0.15 for each share you own.
This may not seem like a lot, but when you
have built your portfolio up to thousands of shares, and use
those dividends to buy more stock in the company, you can make a
lot of money over the years.