10:29 5G EVERF10 Marketplaces: Investing Basics \( { }^{\text {™ }} \) What You Know Question 1 of 3 A dividend is... a type of interest you earn from bonds once the bond reaches maturity. a payment you receive from a company's profit when you own stock shares in that company. a method of measuring the time value of money. a period of time that you monitor an investment's potential for growth. Submit Continue platform.everfi.net

Dividends are like the cherry on top of investing in stocks! When you own shares in a company that is profitable, they may reward you with a portion of their earnings. This payment can come in the form of cash or additional shares, providing you with an extra incentive to be a shareholder and a stake in the company's success. In the real world, dividends can be a key part of an investment strategy, especially for those looking for steady income. Many investors reinvest their dividends to purchase more stocks, compounding their investment over time. This approach transforms the power of compounding into a financial superpower, making it a favorite for long-term investors aiming for wealth growth!