A dividend is money from the company’s profit that is paid to its stockholders at specific intervals. The dividend can be issued in the form of cash, stocks or, technically, anything the company chooses. Hundreds of years ago, the East India Company paid their dividends in actual spices. But not all stocks pay dividends! Even if the company is profitable and could afford to share some of its cash with its shareholders, some companies choose to reinvest that money to grow the business even more. This is common for young companies. At any point, a company can decide to start, or stop paying a dividend (but usually if they change their mind a lot, shareholders start to get annoyed).

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