Dividend
Also known as: Dividende, distribution, payout
A dividend is a profit distribution that a company pays to its shareholders — usually once per year or quarter. If you own stocks or a distributing ETF, you regularly receive money in your account without selling anything.
How much dividend do you get?
Typical dividend yields are 1–5% per year. An MSCI World ETF distributes about 1.5–2%. With €10,000 invested, that would be €150–200 per year. Sounds small, but with compound interest and a growing portfolio, it becomes significant over the years.
Dividend vs. price growth?
There are two ways to make money with stocks: capital gains (stock increases in value) and dividends (regular payouts). Both together make up the total return. Some companies pay high dividends (e.g., utilities), others prefer to reinvest profits into growth (e.g., tech companies).
BudgetHeld says
Dividends are passive income — you can enter them as additional income in your BudgetHeld budget once your portfolio is large enough. Until then: letting them reinvest (accumulating ETF) is more efficient for wealth building.
Related tools
Compound Interest Calculator →Written by David El Dib — Financial expert & founder of MoneyTalk