Dividend Investment Glossary
The more you know, the better you invest. Learn essential financial terms easily.
189 terms in total
FIRE Movement
The FIRE movement focuses on achieving financial independence and retiring early through aggressive saving and investing. Learn how dividend investing can replace your labor income.
Passive Income
Passive income is money earned with minimal active effort. Discover why dividend investing is the most scalable and maintenance-free way to 'make money while you sleep.'
Dividend Calendar Strategy
The dividend calendar strategy aligns the payment dates of different stocks to ensure a consistent flow of cash every month. Learn how to design your personal 'artificial paycheck.'
T+1 Settlement
T+1 settlement means stock trades complete in just one business day. Learn how the US market's shift to a faster cycle affects your dividend capturing strategy.
Withholding Tax
Withholding tax is the tax deducted at the source before you receive your dividends. Understand how this 'tax drag' affects your net yield and compounding speed.
Tax Treaty
International agreements to prevent double taxation. The US-Korea treaty reduces US dividend withholding from 30% to 15%.
Dividend ETF
An ETF holding a basket of dividend-paying stocks. Get diversification and dividend income in one investment without picking individual stocks.
High Dividend ETF
ETFs that offer above-market dividend yields. VYM, HDV, SPYD are popular choices for investors needing immediate cash flow.
Dividend Growth ETF
ETFs holding companies with consistent dividend increase histories. SCHD, VIG, DGRO are popular - optimized for long-term wealth building.
Utilities Sector
Companies providing electricity, gas, and water infrastructure. Known for defensive characteristics and high dividend yields.
Healthcare Sector
Companies in pharmaceuticals, medical devices, and insurance. Benefits from aging demographics with stable dividends and growth potential.
Financial Sector
Banks, insurance, and asset management companies. Benefits from rising rates and offers high dividends.
Energy Sector
Oil, gas, and renewable energy companies. Sensitive to oil prices but offers high yields popular with income investors.
Communication Sector
Telecom, media, and internet companies. Stable cash flows enable high dividends from many established players.
Consumer Staples Sector
Food, beverage, and household products companies. Defensive with stable dividends regardless of economic conditions.
Dividend Screener
A tool to filter dividend stocks by various criteria like yield, growth rate, and payout ratio to find high-quality investments matching your specific goals.
Ex-Dividend
The status when dividend rights have been removed from a stock. Buying on or after the ex-dividend date means missing that quarter's dividend, making it a critical date for timing investments.
Record Date
The date when shareholders eligible for dividends are finalized. Due to the settlement cycle, you must purchase the stock before the ex-dividend date to be officially registered on this day.
Payment Date
The actual date dividends are deposited into your account. Usually 2-4 weeks after the record date, this is the 'payday' that realizes your investment returns.
Declared Dividend
The dividend officially announced by the board of directors. Once declared, payment becomes a legal obligation, signaling management's confidence in the company's financial future.