Skip to main content
← Back to Market Foundations

Getting Paid to Wait: Dividends

Some companies share profits with shareholders directly, in cash, on a schedule.

A dividend is a cash payment a company sends to shareholders - usually quarterly - as a direct way of sharing profits, separate from whatever the stock price is doing.

Dividend yield expresses that payment as a percentage of the current stock price, which makes it easy to roughly compare 'cash income' across different stocks (a 4% yield pays roughly 4x more per dollar invested than a 1% yield, all else equal).

Not every company pays one - fast-growing companies often reinvest everything back into the business instead. A dividend isn't automatically 'better'; it's a different profile (income now vs. growth later).

Dividend Dividend Yield
See It On a Real Stock

JNJ is a well-known dividend payer. Check its Financials panel for its dividend-related figures alongside its other Key Metrics.

Open JNJ's live Bullpen →
Check Your Understanding

Sign in to take this lesson's quiz and track your progress.

Apply This
Check JNJ's dividend metrics in Financials →