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Dividend: The person who wrote that diamonds are a girl's best friend, obviously didn't know about dividends. In this case, the company wants to share the wealth (yes!) among those who own it, with its board of directors deciding on a per-share payment for shareholders. Before getting too excited, remember this: if you own preferred shares, you generally have the privilege of getting a fixed amount of income per year. If you own common shares, the amount paid will depend on the good (or bad) fortunes of the company. You may get nothing if business is down or earnings are reinvested to buy new equipment, invest in technology, and further growth. Not as bad as you think: the hope is that investing money back will yield bigger returns down the road.

 
 
 
 
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