In Investing, a dividend represents a share of a company's profits distributed to its shareholders.
It's crucial to understand that not all companies listed on the stock market opt to provide dividends to their shareholders.
Many newer companies, especially those in rapidly evolving sectors like technology, often reinvest their profits back into the company to support ongoing growth.
Examples of companies that typically don't pay dividends include Tesla, Netflix, and Amazon.
If you decide to invest in U.S. stocks using the Plum app, we will distribute dividends in cases where the companies choose to issue them.
These dividends are usually paid quarterly each year and are credited to your Primary Pocket as soon as the company issues them.
You can keep track of these transactions in the Activity section of your app.