A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business and pay a proportion of the profit as a dividend to shareholders. me: Got it kids? them: Ummmmmm. me: Okay, what about this? When a company makes a bunch of money they take some of that money and … read more Kids Investing — Understanding Dividends