Dividend Investment Glossary
The more you know, the better you invest. Learn essential financial terms easily.
189 terms in total
Yield on Cost (YoC)
Yield on Cost (YoC) reveals your *true* dividend yield based on your original investment. A key metric for long-term investors.
Payout Ratio
The Payout Ratio shows the dividend percentage of a company's net income. Assess dividend sustainability.
Ex-Dividend Date
The **ex-dividend date** is key for dividend investors. Buy before this date to get paid. Miss it, miss the dividend!
Dividend King
Dividend Kings are elite stocks with 50+ years of dividend increases. Learn how to find and invest in them for reliable income.
Dividend Aristocrat
Dividend Aristocrats are S&P 500 companies with 25+ years of consecutive dividend increases. Reliable income stocks.
Compound Interest
Unlock wealth! **Compound interest** reinvests earnings for exponential growth. See its power for dividend investing.
WACC (Weighted Average Cost of Capital)
Understand WACC for dividend investing. Evaluate risk & optimize your income portfolio.
Monthly Dividend
Stocks that pay dividends monthly, offering regular income. Ideal for retirees needing consistent cash flow for expenses like rent and groceries.
Special Dividend
A **special dividend** is a one-time bonus payment. Often paid when a company has extra cash. Learn more!
Dividend Growth Rate
Dividend Growth Rate (DGR) shows how quickly a company's dividend increases. Crucial for long-term income!
DRIP (Dividend Reinvestment Plan)
Automatically reinvest your dividends to buy more shares, turning dividend payments into a powerful compounding machine that builds wealth while you sleep.
BDC (Business Development Company)
Companies that lend to small and mid-sized businesses. BDCs offer high yields (often 8-12%) but come with higher risk and sensitivity to economic conditions.
REITs (Real Estate Investment Trust)
Own real estate without being a landlord. REITs let you invest in shopping malls, apartments, and data centers while receiving 90% of profits as dividends.
Covered Call
Generate income selling covered calls on stocks you own. Boost yield, but cap upside. Great for sideways markets.
Dividend Cut
A **dividend cut** is when a company reduces or eliminates its dividend, often signaling financial distress. Protect your income!
Preferred Stock
A hybrid security that pays fixed dividends like a bond but trades like a stock. Preferred shareholders get paid before common stockholders.
TTM (Trailing Twelve Months)
Essential dividend investing concept. TTM (Trailing Twelve Months) helps investors make informed decisions about dividend stocks and portfolio management.
Yield Trap
A **yield trap** is when a high dividend yield is unsustainable, often leading to dividend cuts and stock price drops. Avoid these!
ETF Distribution
Essential dividend investing concept. ETF Distribution helps investors make informed decisions about dividend stocks and portfolio management.
After-Tax Yield
Essential dividend investing concept. After-Tax Yield helps investors make informed decisions about dividend stocks and portfolio management.