What are dividends?

Dividends are the portion of a company’s earnings that are paid out to its shareholders. Usually if dividends are not paid out then a company is reinvesting profits into future growth. The board of directors of a company decides whether to declare a dividend to shareholders of record as of a particular date.

If a customer invests money in a stock that pays cash dividends, it will be added to the Cash to Invest balance and reflected on the monthly statement.

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