What are dividends, and how do they work?
If youâre a stockholder, youâve likely felt the rush of adrenaline as you watch the value of your portfolio surge.
But the market doesnât always go up. Sometimes it goes up and then spikes down, and other times itâs like riding a violently rocky ship, crashing through the waves. If the rocky waters scare you, you may decide that focusing on dividends, rather than capital gains, as a source of return may make more sense for you.
But what exactly are dividends, and how does this source of income work?