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LSDefine
Simple English definitions for legal terms
dividend income
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A quick definition of dividend income:
Dividend income is money that you get from owning stocks or shares in a company. It's like a reward for being a shareholder. You can get this money regularly or sometimes just once a year. You have to pay taxes on this income.A more thorough explanation:
Dividend income is the money you receive from owning stocks or shares in a company. This income is usually paid out periodically, such as quarterly or annually. It is considered a type of income, which is money or other forms of payment received from various sources, including employment, business, investments, royalties, gifts, and more.
For example, if you own 100 shares of a company that pays a $1 dividend per share, you would receive $100 in dividend income. This income is subject to taxation, meaning you may have to pay taxes on the money you receive.