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Introduction to Dividends

Trading Course

Let's explore dividends, known to serve several key roles in an investment portfolio. First, they offer a steady income stream, appealing to investors seeking cash flow, such as retirees. Second, reinvesting dividends to buy more shares can accelerate growth through compounding. This effect boosts wealth accumulation for long-term investors.

This lesson explores the different types of dividends: cash dividends versus stock dividends, regular dividends versus special dividends, and the concept of dividend yield, including how to calculate it and why it’s significant for investors.

As we’ve discussed in prior lessons, a dividend is a payment made by a company to its shareholders, usually in the form of cash or additional shares. It’s a way for companies to share their profits with investors. Key Dividend Dates Now, when a company declares a dividend, there are a few important dates to […]

This lesson highlights the power of reinvesting dividends over time, which can significantly grow an investment. The lesson uses examples to illustrate how dividends can compound and how the financial health of a company impacts investment strategies.

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