What is a dividend?
A dividend is a distribution of a company’s earnings, a divvying up. Say you own shares of Coca-Cola, and Coca-Cola makes some profit. If those shares pay dividends (not all do), you get a certain amount of the profit the company distributes to its shareholders. That amount is determined by how many shares you have. Your share of the dividends is in proportion to how many shares you own.
Dividends are almost always paid out in cash payments (occasionally additional shares of stock are issued, but it’s usually cash).
Many of the ETFs you can invest in on Stash pay dividends. These payments usually occur four times a year (at the end of every quarter).
Q. What is diversification?
Diversification means making multiple investments so your portfolio is not tied to a single asset class, industry, company, or region. When you diversify, you are ensuring that your investments are not subject to the exact same risks, and are less likely to suffer the same losses. Diversification is often described with the old adage, “Don’t…
Q. How can I invest in a specific company on Stash?
The short answer is: you can’t buy individual stocks on Stash, with the exception of Berkshire Hathaway, Class B, which we call Roll with Buffett. However, Berkshire Hathaway is Warren Buffett’s holding company, so it also includes many companies, represented in a single stock. This doesn’t mean you can’t invest in a company you’re interested…
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