Investing
Dividend
A share of a company's profits paid out in cash to shareholders.
When a company makes a profit, it can either reinvest it or hand some to shareholders as a dividend.
Dividends feel like free cash, but the share price typically drops by roughly the dividend amount, so it is partly your own money returning.
In India dividends are taxed at your income slab, so for long-term wealth, reinvesting or growth funds often beat chasing dividends.
For example
A company paying a ₹10 dividend per share puts cash in your account, but its stock usually dips about ₹10 on the ex-dividend date.