Dividend Vision Academy
Dividend Terms
The vocabulary of dividend investing, explained. From ex-dividend dates to return of capital, these guides define the terms you'll meet on every fund page and dividend announcement — so the fine print stops being a mystery.
Dividend Terms
Distribution Rate
Distribution rate is a fund's most recent payout, annualized and divided by its price. It shows the headline yield income investors see, but it can hide return of capital and option premium rather than pure income.
Dividend Terms
Dividend Growth
Dividend growth is the rate at which a company or fund raises its payout over time. For long-term income investors, a steadily rising dividend usually builds more income and wealth than a high but static yield, because the payout compounds and your yield on cost climbs year after year.
Dividend Terms
Dividend Payout Ratio
The dividend payout ratio is the share of a company's earnings paid out as dividends. It is one of the quickest ways to gauge whether a payout is safe and has room to grow — a low ratio leaves a cushion, while a very high one warns that a cut may be coming.
Dividend Terms
Dividend Yield
Dividend yield is a fund or stock's annual dividends per share divided by its price, expressed as a percentage. It tells you how much income you earn per dollar invested at today's price.
Dividend Terms
Ex-Dividend Date
The ex-dividend date is the cutoff that decides who gets a fund's next dividend. Own the shares before it and the payment is yours; buy on or after it and the seller keeps it.
Dividend Terms
Preferred Stocks
Preferred stocks are a hybrid between a bond and common stock — they pay a fixed dividend, sit above common shares in the capital structure, and behave much like bonds when interest rates move.
Ready to apply what you've learned?
Analyze a portfolio, compare funds, or screen for income — with the concepts from these guides built in.