Dividend Investment Glossary
The more you know, the better you invest. Learn essential financial terms easily.
189 terms in total
Annual Dividend
The total amount of dividends paid by a company over a full fiscal year. It is the core metric for calculating dividend yield and planning annual cash flow.
Interim Dividend
A dividend payment made by a company before its full-year earnings are finalized. It reflects management's confidence in the current year's performance.
Cash Dividend
A direct monetary payment from a company's profits to its shareholders. The most standard form of dividend, providing immediate liquidity and reinvestment power.
Stock Dividend
A dividend paid in the form of additional shares instead of cash. It increases your share count and offers tax deferral benefits for long-term growth.
Dividend Yield Spread
The difference between a stock's dividend yield and the risk-free rate (usually Treasury yields). A critical indicator for timing the attractiveness of dividend stocks.
Dividend Streak
Consecutive years of dividend payments or increases. Dividend Kings have 50+ years, Aristocrats have 25+ years.
Dividend Reduction
Cutting dividend payments below previous levels. Less severe than complete suspension but still a warning sign.
Dividend Adjustment
The stock price drop on ex-dividend date by approximately the dividend amount. Important for chart analysis.
High Yield Trap
Abnormally high yields often signal imminent dividend cuts or stock price crashes. Careful analysis required.
Dividend Freeze
Maintaining dividend at previous levels without increase or cut. May signal slowing growth.
Dollar Cost Averaging (DCA)
Investing fixed amounts regularly regardless of price. Reduces timing risk and lowers average cost over time.
Dividend Currency
The currency in which dividends are paid. US stocks pay in USD, converted to local currency for international investors.
DRIP Return
Total return when dividends are reinvested. Compounding makes this significantly higher than cash dividends over time.
Dividend Tax
Tax on dividend income. Korean stocks: 15.4%, US stocks: 15% withheld at source.
Dividend Risk
The probability of dividend cuts or suspensions. Assessed through payout ratio, debt levels, and cash flow analysis.
Total Return
Combined return from price appreciation and dividends. Measures true dividend investing performance.
Income Investing
Strategy focused on regular income from dividends and interest. Ideal for retirees and those needing cash flow.
Dividend Contender
Companies with 10-24 consecutive years of dividend increases. Future Dividend Aristocrat candidates.
Target Dividend Income
A compass for financial freedom! Calculate exactly how much you need in dividends to cover your living expenses and design a systematic roadmap.
Dividend Growth Potential
Finding companies where future dividends are even more exciting than today's! Attach a powerful compounding engine to your assets by analyzing growth potential.