IO - Stock Dividends Lesson
Stock Dividends
Introduction
Even though stocks come with the most risk, there are a lot of potential rewards. Not only can you profit from an increase in the price of your shares, but if the company makes a profit they sometimes share that profit with their shareholders! These types of stocks are called income stocks. The profit that is split is called a dividend. Dividends are usually only around 2% of the price of each share. It’s definitely a nice perk of owning shares, but won’t make you a millionaire overnight!
Dividend Income Checks
Dividend income checks are usually paid out annually or quarterly. A dividend is awarded for each individual share. Click through the interactive activity, or read the transcript below, to learn more about dividends.
Click here to view the transcript of the above interactive activity. Links to an external site.
Stock Yield and Return on Investment
Two other concepts that deal with dividends are the stock yield and the return on investment. Click through the interactive activity, or read the transcript below, to find out more about each of these. Use the arrow on the bottom right to advance to the Return on Investment section after you do the stock yield example.
Click here to view the transcript of the above interactive activity. Links to an external site.
Dividends Practice
Click on the arrow on the bottom right to move to the next question.
Why do companies “go public?
Watch this video to see why companies let the public buy shares in their company!
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