Smart Finance

Term

Dividend

A slice of a company's profits paid out in cash to its shareholders, usually every quarter. Nobody is obliged to pay one, and companies that are growing fast often choose not to.

In pesos: A share that costs $100 MXN and pays $3 a year in dividends yields 3 % — before the price moves at all.

Where to go deeper

2/4 6 min Read What you actually buy when you buy a share A share is a piece of a company, not a number on a screen. Where its value comes from, why the price moves, what a dividend is, and why it is not a lottery ticket.

More terms on the same topic

Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.