Dividends

Dividends are payments made to shareholders from a company's profits as a reward for being an investor.

Think of dividends like fruits from a tree you've planted.

Imagine you invest in a company by buying its shares, which is like planting a tree in your garden. Over time, just as a healthy tree bears fruit, a successful company can earn profits. Some of these profits are shared with shareholders as dividends, similar to how you can pick and enjoy the fruits from your tree.

Not all trees bear fruit every season, just as not all companies pay dividends regularly.

Dividends are a reward for investing in the company, providing an extra source of income besides the potential increase in the value of the shares, just like enjoying fruits while watching your tree grow.