Dividend

A dividend is a cash payment a company makes to shareholders out of its profits, typically quarterly in the US and quoted per share. Own 500 shares of a stock paying $0.50 per quarter and $250 lands in your account every three months.

Dividends are declared by the board, not guaranteed by anything. Companies protect them fiercely — a cut is read as distress and usually hammers the stock — which is why long streaks matter: the S&P 500 "Dividend Aristocrats" have raised payouts for 25+ consecutive years.

Timing runs through fixed dates: you must own the stock before the ex-dividend date to receive the payment, and the share price drops by roughly the dividend amount that morning, so buying the day before captures no free money.