Dividends are payments made by a company to its shareholders, usually as a reward for investing in the company.
If a company pays dividends, you will receive a payment for every share of the company you own. These payments can be made to you monthly, quarterly, semi-annually, annually, or as special one-time dividends, often issued due to extraordinary profits or events. The amount of each payment is typically small, often averaging around $1 per share, but if you own a large number of shares, these payments can add up to a substantial amount.